Stimulating investment in pearl farming in ... - World Fish Center

Stimulating investment in pearlfarming in Solomon IslandsPrepared by:FINAL REPORTAugust 2008The WorldFish Center, Solomon Islands,andThe Ministry of Fisheries and Marine Resources, Solomon IslandsSupported by funds from the European UnionMinistry of Fisheries andMarine Resources

CONTENTS1 THE PROJECT...............................................................................................12 INTRODUCTION ..........................................................................................22.1 Pearl farming in the Pacific.............................................................................22.2 Previous pearl oyster exploitation in Solomon Islands...................................43 THE PEARL OYSTERS ................................................................................53.1 Suitability of coastal habitat in Solomon Islands............................................53.2 Spat collection and growout............................................................................63.3 Water Temperature .........................................................................................83.4 White-lipped pearl oyster availability.............................................................83.5 The national white-lip survey .........................................................................83.6 Water quality.................................................................................................133.7 Natural disasters............................................................................................144 DOING BUSINESS IN SOLOMON ISLANDS..........................................154.1 Security of investment ..................................................................................164.1.1 Governance and law......................................................................................164.1.2 Land and land lease issues ............................................................................174.1.3 Physical Security...........................................................................................184.1.4 Security of profits .........................................................................................184.2 Taxation and incentives ................................................................................194.2.1 Tax structure .................................................................................................194.2.2 Incentives ......................................................................................................194.3 Labour ...........................................................................................................204.4 Environmental impact assessment. ...............................................................215 POLICY, REGULATION AND MANAGEMENT GUIDELINES............215.1 Policy ...........................................................................................................225.2 Legislation.....................................................................................................235.3 Licencing.......................................................................................................256 INVESTOR VISITS .....................................................................................266.1 Investor Feedback .........................................................................................276.2 Commercialisation and Financing ................................................................286.3 Investor’s recommendations for next steps...................................................307 CONCLUSION.............................................................................................31

Appendix IAppendix IIAppendix IIIAppendix IVAppendix VAppendix VIPast research and development on black-lip pearl oysters inSolomon Islands.Suitability of habitats in the Solomon Islands and other regions ofthe Pacific for growth of black-lip and silver-lip pearl oysters.Water temperature and cyclone frequency in the Solomon Islandsand other key regions of the Pacific: implications for pearlfarming.Abundance, size structure and quality of silver-lip pearl oysters inSolomon Islands.Solomon Islands: the investment climate for pearl farming.Pearl farming policy and management guidelines.

1 The ProjectThe overall objective of the project is the reduction of poverty in rural areas of SolomonIslands through creation of livelihoods based on sustainable aquaculture. This fits withinthe over-arching goals of the WorldFish Center in the Pacific to reduce poverty andhunger in rural communities, and with the Ministry of Fisheries and Marine Resources(MFMR) to stimulate rural development and to develop aquaculture. It has beenrecognised that the nature of the pearl farming industry means that a high chance ofsuccess requires a long term investment from an established pearl farming organisation.This project has been specifically designed to compile the elements of a pre-feasibilitystudy to provide offshore pearl companies with sufficient information to investigate thepotential for long-term investment in pearl farming in Solomon Islands.The overall output of the Project was intended to be decisions by pearl farmingcompanies in the region to invest, or not to invest as the case may be, in Solomon Islands,though these decisions are beyond the ability of project staff to influence. Throughout,staff have been admonished to provide unbiased, factual information free of weightingeither for or against investment. The direct outputs leading to the decisions concerninginvestment are:1. Documentation of past research and development on black-lip pearl oysters inSolomon Islands likely to be of interest to investors.2. A national survey of the location, abundance and quality of white-lip pearl oystersin Solomon Islands.3. Analysis of climatic and habitat comparative advantages of Solomon Islands forpearl farming.4. A summary of the investment climate in Solomon Islands.5. Policy guidelines for sustainable investment in aquaculture and pearl farmingsupporting small-holder community involvement.6. High-level contacts within the offshore pearl companies most likely to considerinvesting in pearl farming in Solomon Islands.7. Presentations to potential investors on the pearl oyster resources of SolomonIslands, results of research on culture methods and the advantages and risks ofinvestment, and policies for development of aquaculture and pearl farming inSolomon Islands.8. Recommendations to government concerning the licensing conditions for pearlfarming to provide opportunities for small-holders to supply large farms, and toensure that the industry operates in an environmentally sustainable way.9. A synthetic report covering all project activities.Each of these elements has been completed and this report represents the ninth of them.Rather than repeating the information contained in the individual consultants’ reports, itwill provide a broad narrative report synthesising the information obtained from the1

various project elements to describe current conditions in Solomon Islands with respect toinvesting in pearl farming. For ease of reference, the individual reports accompany thisdraft report as appendices. It is encouraging to note that interest from pearl farmers waspositive, with half of those contacted requesting more information. Ultimate success liesin landing one interested investor however, and it has emerged that there are otheractivities that might assist this process. At the end of this report we highlight the areas ofongoing research that the investors consider will overcome the remaining barriers toinvestment in Solomon Island pearls.2 IntroductionSolomon Islands is a tropical, maritime country. Comprising more than 900 islands andcovering an area more than 900 x 250 km, the two parallel archipelagos that make up thegeographical spine of the country run from 6.5 o to 11 o S. Outlying islands increase thearea of the country still more. There are a myriad of undeveloped and unspoiled bays andsemi-enclosed lagoons ranging from very small to the world’s largest double-reef lagoonsystem at Marovo Lagoon. One of the planet’s largest atolls, Ontong Java, is also foundin Solomon Islands. For generations, Solomon Islanders have based their lives around thesea; today seafood still provides the bulk of dietary protein, fishing is part of a way of lifefor most rural Solomon Islanders and living away from the coast is a rarity.As islanders’ lifestyles have undergone steady monetisation, the sea has continued toprovide, with trochus shell, beche-de-mer, shark fin and fish constituting important cashcommodities. Mother of pearl (MOP), from black-, white- and brown-lipped pearloysters has historically been an important cash commodity, although severe stockdepletion led to the imposition of an export ban since 1994. With the hope that the banhas allowed stocks of pearl oysters to replenish and anecdotal evidence that this has beenthe case the Solomon Islands Government (SIG) has raised the question as to whetherpearl farming, which contributes to the economies of some other Pacific countries, couldbe effective in Solomon Islands. This is a poor time to be entering the pearl farmingcommunity, especially black pearls. Pearls have become increasingly competitive inrecent years and scope for a new player in the market may be limited. However,competition has caused some operators to move offshore to cut labour and overheadcosts, to work with new stocks that may have marketable differences to traditional areasand escape the strict regulatory environment in some jurisdictions. Solomon Islandscertainly has the right conditions for growth of pearl oysters and plenty of space for farmestablishment, but crucially it may offer advantages in these economically importantareas.2.1 Pearl farming in the PacificSeveral species of pearl oyster (family Pteriidae) occur in the Pacific Islands region,including Solomon Islands. Two, the black-lip pearl oyster, P. margaritifera, and the2

white-lip pearl oyster 1 , Pinctada maxima, are widely used in commercial production offarmed pearls, and both of these occur naturally in Solmon Islands. P margaritifera is thesmaller of the two species, and is found throughout the Pacific Islands region, as well asin the Atlantic and Indian Oceans. P maxima has a more limited distribution, and is onlyfound naturally in the western Pacific in high-island countries west of Fiji, althoughattempts have been made to introduce it to Palau, Kiribati, Tonga and other countries.Commercial farming of white-lip pearl shell originally developed on the northern andwestern coasts of Australia. In recent years some Australian operators have movedoffshore, as a result of which new farming operations have spread to Indonesia Vietnam,Cambodia, Philippines and Myanmar. Indonesia has now overtaken Australia as theworld’s largest producer of P. maxima pearls in terms of volume, although not yet interms of value. A single white-lip pearl farm has been operating in Papua New Guineasince about 1995, but there are no others in the Pacific Islands region. Pearls from whitelippearl oysters are generally more valuable than those from black-lip because of theirgold-to-white coloration and larger sizes.Pearl farming using the black-lip pearl shell has been the domain of the Pacific Islandsregion in the central Pacific. It has developed primarily in French Polynesia and CookIslands, of which French Polynesia is by far the most prominent. In recent years black-lippearl farming has spread to Melanesia and Micronesia, particularly to Fiji, wherespectacular and unusually coloured pearls are being produced. Pearl farming wentthrough a 25-year development phase in French Polynesia, and continues to be thebiggest employer and export earner for the country. However the industry has declinedsignificantly in recent years, mainly due to problems of overproduction and poor pearlquality (discussed more later). In 1998 French Polynesia produced around 5 tonnes ofpearls worth over US$ 150 million; in 2002, it exported over 11 tonnes, worth about thesame amount. Average pearl prices have fallen from around US$ 35/ gramme to aboutUS$ 14/ gramme in the past ten years.Pearl farming has contributed enormously to the French Polynesian economy, both due tothe revenues it generates, and because it can be carried out in remote areas and thuscontribute to rural earnings and livelihoods. In its heyday the development of the pearlindustry was accompanied by a reversal of the trend towards urban drift, with manyresidents of the capital, Tahiti, returning to their original homes in the outer islands totake up pearl farming. As a result of falling pearl values, however, the social benefitsbeing derived from the industry are also in decline. Between 1990 and 2008 the numberof pearl farming concessions fell from 2,700 to around 700, with larger producers buyingout many of the smaller family farms during that period. Around 7,000 people are nowthought to be employed in the industry, down from more than three times that figure 15years ago. There are new signs of population drift from outer islands to the capital andother urban centres, and concerns over the social problems this may engender.1 P. maxima is commonly referred to as white-lip, gold-lip and silver-lip. It is not known for certainwhether only one or both these varieties occurs in Solomon Islands. The term white-lip is used here toinclude both varieties.3

PNGSolomon IsPNGCook IsVanuatuFijiFr. PolynFigure 1. Google Earth image of the South Pacific showing pearl farming regionsreferred to in this document. Australian sites from the NW coast, through Torres Straightto southern Queensland are approximated.2.2 Previous pearl oyster exploitation in Solomon IslandsPearl farming in Solomon Islands is not a new idea (see Appendix I). Coincident withthe first modern pulse of MOP harvesting in 1968-1972, attempts were made to establisha pearl culture industry, but this was not successful and closed with the commercial MOPfishery when stocks were so depleted that fishing became uneconomic. A second pulseof MOP harvesting occurred between 1987 and 1994, when an export ban came on inresponse to stock depletion. Shortly after the ban, an experimental black-lip pearl farmwas set up near Gizo in Western Province. By 2000 pearls were produced and sold, butthe experimental farm did not attract commercial investment and ceased to produce pearlsin 2003 when research funds ran out.4

Pearling is not new to Solomon Is. In 2000-2003 black pearls were successfully producedat an experimental farm in Western Province.The period 2000-2003 was a poor time to be seeking investments in Solomon Islands.The country was wracked by civil strife from 1999 to 2003, when an Australian-ledinternational intervention force, the Regional Assistance Mission to Solomon Islands(RAMSI) arrived. With order restored and the economy growing, the government isattempting to promote overseas investment, particularly in the rural areas. As part of thisprocess, it has been assisted by the European Union’s STABEX fund to produce acomprehensive portfolio of information to disseminate to companies and investorspotentially interested in pearl farming in Solomon Islands.3 The pearl oysters3.1 Suitability of coastal habitat in Solomon IslandsBoth species of pearl oyster that are currently used in the Pacific for cultivation of pearls,Pinctada margaritifera (the black-lip pearl oyster) and P. maxima (the white or gold-lippearl oyster) are native to Solomon Islands (see appendices II and IV). Both have nationwidedistributions, although the preferred habitat for adult white-lip pearl oysters is morepatchy than that of black-lip. Reef structure in Solomon Islands is akin to that in otherMelanesian countries (Papua New Guinea, Fiji, Vanuatu) with reefs fringing islands,where they can form complex lagoon structures, but with atolls rare (e.g. Figure 2).Black-lip pearl oysters are usually associated with hard substrata in the shallower parts ofsuch reefs, while adult white-lips tend to occur more in fast flowing channels amongstislands and reefs than on the reefs themselves.5

Figure 2. Typical coastal habitat for much of Solomon Islands. Fringing reefs, a mix ofhigh and low-lying islands and freely exchanging lagoon structures prevail. Closed orsemi-closed atolls are rare.The prevalence of fringing reefs rather than atolls contrasts with the situation in the CookIslands and French Polynesia, where black pearl farms are typically based in atolls whereblack-lip pearl oyster reach their maximum abundance. Growth rates of oysters withinthese nutrient-poor lagoons are, however, less rapid than outside of the lagoons. Goodresults of grow-out of black-lip pearl oyster in Fiji and Solomon Islands confirm that,provided the requirement for high-quality water is met, fringing reef lagoons andembayments can be suitable sites for cultivating black pearls. We note that SolomonIslands has one of the world’s largest atolls, Ontong Java, at 5 o S latitude, but there is noinformation on the status of pearl oysters there; it may be too far north and too warm forblack-lip pearl oyster culture.3.2 Spat collection and growoutPrevious research programmes targeting pearl farming have yielded a good deal ofinformation on the black-lip pearl oyster in Solomon Islands. As this research wastargeted at modifying techniques in use in French Polynesia for Solomon Islands, thedifferences between the countries were investigated in detail. A feature of the atolllagoons where pearl cultivation has been developed in Polynesia is that they facilitatecollection of spat by trapping eggs produced within the lagoon. Spat is a key element ofblack-lip pearl oyster cultivation and spat collection in Solomon Islands is more difficultthan in these Polynesian farms due to the more open reef structures and greatermovement of water. However, research by the WorldFish Center has shown that spat can6

e successfully harvested from close to Solomon Island reefs throughout the country.Experimental spat collections have been made from Guadalcanal to Shortland Islands andmost regions had broadly similar spatfalls. Of the areas where high collections are mostfrequent, Western Province (see Figure 3 for locations) stands out, though even here theyield per spat collector can be low (an average of 1-12 per collector deployment) and isvariable between locations and years.ChoiseulManning StraightShortlandIslandsKiaWaghinaWesternSanta IsabelGizoNoroMarovoLagoonRussellIsalndslHoniaraGuadalcanalMalaita100 kmMakiraFigure 3. Map of Solomon Islands marked with provinces and main locations referred toin the text. The scale bar represents 100 km.A significant issue in Solomon Islands has proved to be the high predation on young spat,which led the experimental pearl farm to amend the traditional protocols for spatcollection and grow-out. Rather than leaving spat on collectors until they reach a sizelarge enough for hanging from grow-out line, as dine in French Polynesia, spat wereharvested from collectors at a small size (~10 mm) and an intermediate grow-out phasewas introduced until they reached the size for transfer to hanging culture. The labour costof this extra operation may be offset by the low labour costs in Solomon Islands (US$ 5-7per day for semi-skilled workers compared to US$ 50 per day in Tahiti – see latersections). Once established, however, grow-out of oysters can be rapid at SolomonIslands, with spat able to reach 100-120 mm in one year. This is six months faster than istypical of atoll farms in Cook Islands. Preparing the report summarising the informationon black-lip pearl oysters allowed Patrick Mesia from the Aquaculture section of MFMR7

to work alongside WorldFish science staff and gain experience and confidence withcontributing to written reports.3.3 Water TemperatureSolomon Islands’ proximity to the equator and consistently high seawater temperatures(Appendix III) may in part be the cause of the rapid growth of black-lip pearl oyster.Figure 4 shows that Solomon Islands is the most northerly site in the region to growblack-lip pearls, and that temperatures tend to be slightly higher than other black pearlareas (Fiji, Cook Islands and French Polynesia). The white-lip pearl oyster, which tendsto prefer warmer water than the black-lip, may also be an appropriate species choice forthis location.Temperature ranges for Solomon Islands and established pearling countries are shown inTable 1. The warm, stable temperatures of Solomon Islands are similar to white-lipfarming regions at Northern Queensland/Torres Straight and PNG, and only slightlywarmer than black-lip farms at Cook Islands. Environmentally, Solomon Islands shouldbe suited to the culture of both black and white-lip pearl oysters.Table 1. Approximate temperatures of Solomon Island waters and for pearl-producingregions. Where a range of values is given data are available across a latitudinal range.Location Minimum Maximum RangeSolomon Is 27-28 29-30 2Northern Cook Is 27 29 2Fiji 24-27 28-29 2-4PNG 26-28 30 2-4French Polynesia 24-27 27-29 2-3NW Australia 24-25 28-30 4-5Torres Straight 26 29 3Vanuatu 24-27 28-30 3-43.4 White-lipped pearl oyster availabilityUnlike black-lip pearl oyster, white-lip is not commercially taken as spat. Instead amixture of harvested young adult shell and hatchery stock are used. Anecdotal reports ofhealthy populations of gold-lip pearl oysters at sites around Solomon Islands needed to beassessed and as part of this project a comprehensive survey was planned to assess stocks.3.5 The national white-lip surveyThe national white-lip survey was undertaken jointly by WorldFish Center and MFMR(see Appendix IV) and had four elements:8

1. a preliminary survey of villages previously engaged in the MOP trade to obtainfrom local fishers information on the current distribution of gold-lip and to obtainpermission to work in customary waters2. a training phase for local staff in advanced diving techniques, including use ofHookah gear and in Survey techniques3. the survey itself4. analysis and reporting of the survey data, which included a training element forMFMR staffFigure 4. Locations of black- and white-lip pearl farms in the South Pacificsuperimposed on summer and winter temperatures derived from satellite imagery.Solomon Islands is indicated by the blue circle.The preliminary survey was an essential part of the study. Locations (Figure 5) wereselected on the basis of areas spread across the country but each with a record ofsubstantial harvests of MOP in the data held by the MFMR. All locations were visited at9

least two weeks before the main survey took place. At each, village meetings were heldto inform people of the study, to ask permission to work in customary waters and toconduct interviews regarding historical distribution of pearl oysters, likely currentdistribution (and, hence prospective sampling sites) and occurrence of any recent orongoing exploitation. During each interview, the study team sought to have at least oneperson present who could speak/translate between Pidgin and the local dialect and onescientist from the survey team who was fluent in Pidgin and English. A questionnairewas used to structure the interviews and a minimum of five local people who expressedpersonal experience of pearl oyster fishing were interviewed. At each location, threesites were identified on the basis of fisher feedback that were most likely to yield highnumbers of shell.WaghinaKiaTelinaMboliSandlfyMbiliMaramaskeMarauFigure 5. Sites selected for white-lip pearl oyster survey.Communities at all eight locations were easily able to identify three or more sites wheremany oysters should be found. As will be seen later when we report results, not allcommunities were accurate in this regard. The replies to questionnaires, however, showedthat even at the height of the mother-of-pearl industry, the pearl oyster was a substantialcontribution to community income only at Kia and Waghina. These two locations10

consistently emerged as the centres for this species, a finding that confirms previousreports on the MOP industry.The training element of the survey involved formal advanced SCUBA diving training,resulting in awards of recognised industry (PADI) qualifications, informal training in theuse of Hookah (surface supplied) diving equipment and informal training in the surveytechniques to be applied. Table 1 lists the national staff involved in underwater surveyand indicates the training given, and copies of certificates are available from WorldFishCenter, Solomon Islands.The survey itself was in two phases. The first phase used the live-aboard charter vesselMarlin I, chartered from Papua New Guinea, and covered the eastern sites, fromMaramsike on Malaita through to Telina in New Georgia. The western sites, Kia andWaghina, were undertaken by small boat from the WorldFish field station at Nusa Tupe,near Gizo. Initially it was intended to use the Marlin I for all sites, but this plan had to bemodified as the survey was interrupted by the tsunami that hit Western Province on 2 ndApril. The tsunami hit just as the first training was being undertaken in Marovo Lagoonand, because many participants lived in Gizo, this had to be abandoned. Instead, after aperiod of assisting with the aid effort following the tsunami, the survey was resumed, butavoided the most affects areas. The charter period ran out before all sites could becompleted, and finishing the survey by small open boat had to await the relatively calmweather of October.Table 1. National staff receiving dive training through the projectName Organisation Dive training Survey trainingFrancis Kera MFMR Advanced Open Water April 2007Jon Leqata MFMR Advanced Open Water April 2007Alex Meloty MFMR Advanced Open Water April 2007Patrick Mesia MFMR Advanced Open Water April 2007Ronnie Posada WFC Advanced Open Water April 2007Peter Rex MFMR Advanced Open Water April 2007Stephen Sibiti WFC Rescue diver October 2007Mason Tauku WFC Rescue diver April 2007Ambo Tewaki WFC Rescue diver October 2007Regon Warren WFC Rescue diver April 2007The survey protocol that the national staff learned involved towed dives at each of thethree sites at each of the eight locations. Apparatus was constructed locally to tow twodivers behind weights lowered from the ends of a boom rigged across a 6 m aluminiumboat, ensuring that they were able to remain in close contact with the sea bed (essentialfor spotting the cryptic oysters). At each site, the divers collected all the pearl oystersthey observed along four randomly-positioned 4 m wide transects. All were measured,and up to ten at each site were sacrificed to determine the nacre colour. Also recordedwere the latitude and longitude at the beginning and end of each transect, time and11

duration of the dive, maximum bottom depth and the type of substrata found along eachtransect. Position and depth were taken from a Hummingbird 737 combinationGPS/Echo sounder and transect lengths were derived from straight line interpolationsbetween start and finish points. All national staff were trained in all aspects of the surveytechnique and all had an opportunity to experience each role in the team. For many, thiswas their first opportunity to work with GPS and echo sounding equipment as well as thediving methods involved.Divers were not able to access safely depths beyond 35 m. For observations down to 60m a towed underwater camera was used, which recorded onto a Sony DVD recorder.Video surveys were made at four of the sites, where substrate and conditions permitted.Image quality of the camera was less than ideal, but while exact counts of organismswere difficult it was possible to ascertain whether or not dense populations of pearl oysterwere present beyond diving depth.Once the surveys were completed, reporting began. Two training elements wereincluded. Jon Leqata was involved with external consultants in preparation of the reporton the stock assessment and a draft manuscript for submission to the international journalBiological Conservation. Copies of that manuscript are available from WorldFishCenter, Solomon Islands. In addition Dr Hawes from WorldFish Center led a 2-dayworkshop for all staff from the Research and Aquaculture sections of MFMR on dataanalysis, using the survey data as an example.The results of the survey were disappointing. A total of 117 P. maxima were found, butonly 33 of the 96 transects yielded any oysters. The mean (± standard error.) density ofoysters per 400m 2 transect ranged from 1.23 ± 0.38 at Waghina, 1.03 ± 0.27 at Kia and0.66 ± 0.27 at Mboli Passage to

The conclusion of the stock assessment was that the population was insufficient to allowany quota to be allocated for pearl farming at the present time, and that any industryestablishing here would need to be based around hatchery reared stock. We note that anyfollow-up work to this project might address the question of whether such a hatcherycould reasonably be established in Solomon Islands, and look in more detail at the areasaround Kia and Waghina to obtain a more robust estimate of stock status; we believe thatthis would greatly enhance the possibility of the current research yielding success for therural peoples of Solomon Islands. This finding does not prevent establishment of a pearlindustry. Hatchery reared shell are in use in several other areas where wild stocks aresmall, and two of the investors to visit Solomon Islands make extensive use of hatcheryshell in their other operations.Figure 6. Examples of white (left), gold (centre) and off-white (right) shell taken fromKia and Waghina in the Manning Straight region.3.6 Water qualityWater quality requirements differ between black- and white-lip pearl oyster. Black-lippearl oyster are usually grown in clear, oceanic water with no effect from land run-off.White-lip pearl oyster appear more tolerant of moderate turbidity and salinity fluctuationsthan black-lip pearl oyster. In Western Australia some farms are in bays with substantialfreshwater runoff, others in bays with little and experimental comparisons between turbidand clear embayments. Experimental comparisons have shown no significant differencein growth rate. The steep topography of some Solomon Island islands and the frequentheavy rainfall that these attract means that some coastal lagoons (especially thoseimpacted by poorly managed forestry developments) are affected by turbidity andfreshwater runoff. Such systems may be better suited to culture of white-lip pearl oysterthan black. However, many other island-lagoon systems are smaller and low-lying and donot suffer from run-off.13

3.7 Natural disastersEnvironmental risks come in many forms, from earthquake, tsumani, cyclone, through todisease and long-term sea level rise. Most of these are poorly predictable or equallylikely (or unlikely) over wide geographic scales. Of the few “extreme event”-relatedenvironmental risks that are frequent enough to be quantifiable, cyclones and their relatedphenomena can be devastating to pearl farms (see Appendix III). Analysis of theprevalence of cyclones at Solomon Islands (Figure 7) suggests that its risk profile issimilar to Tahiti and places it between PNG, where cyclones are extremely unlikely andNorthern Cook Islands, where one cyclone has passed within 50 km in the period1969/70 to 2004/05. One cyclone has passed a similar distance from Honiara over thatperiod, though none has passed though or affected the Western Province. Cyclones aremuch more likely to pass close to Fiji, Vanuatu and Australia. Cyclones can be seen as aminor risk for pearl farms in Solomon Islands, particularly if placed in they are located inthe northern part of the country.Average Annual number of tropical cyclonesFigure 7. Approximate positions of existing black and white pearl farms and SolomonIslands (blue circle) superimposed on the average tropical cyclone frequency for thesouthwest Pacific.14

4 Doing business in Solomon IslandsEnvironmental and ecological factors are a small part of the decision making that needsto accompany investment in Solomon Islands. Perceived problems over security,stability, corruption and government intervention may sometimes deter foreigninvestment but, if due caution is exercised, investment in Solomon Islands is as secure asin any Pacific islands country (see Appendix V). This is a particularly acute area for pearlfarming, as in most cases little return is made for at least six years and net profit may taketen years or more to achieve. Long term stability is essential. An important preliminaryto assessing what information needs to be given to potential investors was to attempt todetermine which issues would be in their minds when considering investing in SolomonIslands. A workshop was held for MFMR staff and technical assistants which addressedthis question circuitously by considering the advantages and disadvantages of SolomonIslands – and how disadvantages can be mitigated. Outcomes of this workshop weregrouped under two questions, many of which have been covered already in this report,but others of which have not. The author’s selection of key issues to address in theremainder of this report, which deals with economic, cultural and structural issues areitalicised.Why grow pearls in Solomon Islands?• Both black-lip and white-lip pearl oysters are native to Solomon Islands• A national ban on harvesting both species exists with no intention to rescind theban• There is a 10 year history of collection of spat of black-lip pearl oyster andproduction of pearls has been demonstrated• Pearl oysters grow fast in the warm, well-flushed coastal lagoons of SolomonIslands• The environment includes very many more-or-less sheltered coastal lagoonswhere suitable growth conditions may be found for either or both species• Cyclones are very rare• Labour is cheap, income opportunities in rural areas are rare and many ruralcommunities are eager to negotiate use of land and waters• Alternatively there is government land where leaseholds are secure• The government is willing to negotiate incentives to committed investors• There are no other pearl operations in the country and a unique branding ispossible• Solomon Islands are less than three hours by air from Brisbane, has an increasingexpatriate community and tourism is expected to increase• The Ministry of Fisheries and Marine Resources is eager to facilitate such aninvestment and has committed to assisting investors through the early phases ofany such project• Options exist for a phased entry, with joint public-private research towardscommercialisation of Solomon Island pearls possible using existing hatchery andfield facilities15

• Legislative review is underway to provide a sound basis for commercialaquaculture.Why not grow pearls in Solomon Islands?• Pearls are a competitive product and the pay-back time on investment is likely tobe many years• Black-lip spat settlement is variable between years and sites and not alwaysstrong. Extensive spat collection sites and/or hatchery backup may be required• Populations of white-lip pearl oysters are currently insufficient to allowcommercially viable quotas of wild stock. A hatchery may be required• Land tenure in some parts of the Solomon Islands is confused and unreliable.Careful site selection and negotiation, with the support of the Ministry will berequired• Investors will need to set up and maintain harmonious relationships with localcommunities• In-country markets are currently weak but growing• The country has a record of political instability, although since the arrival ofRAMSI in July 2003 this has not been evident• National and (especially) provincial authorities have limited capacity to developand enforce regulations and agreements. Careful negotiation and support of theMinistry will be required• There is no strong history of aquaculture within the country; the only currentaquaculture being small scale culture of seaweed, giant clams and corals.These issues have been grouped and addressed under three subheadings: Security of investment (government stability, security of tenure, physical security) Taxation and incentives Labour4.1 Security of investment4.1.1 Governance and lawBoth National and Provincial Governments in Solomon Islands prioritise decentralisedinvestment, creation of rural jobs and income opportunities and increased exportearnings; pearl farming scores well all round and government interference in theinvestment process is unlikely. Solomon Islands government is not based around politicalparties, but around loose and dynamic groupings of independent politicians. While thereis much news of “political instability” in Solomon Islands, this largely concerns whoshould be Prime Minister and thus in charge of patronage, while external relations withChina/Taiwan and Australia are also a matter of debate. There are few discernibledifferences in policy among the various groupings and major shifts relating to foreigninvestment seem unlikely with changing governments.Establishing investments in Solomon Islands has become simpler in recent years. Undercurrent regulations, a company to be set up to farm pearls would need first to apply under16

the Foreign Investment Act. As pearl farming is not listed as a restricted or prohibitedactivity, a certificate of registration should be issued within five days. More detailedissues may then be addressed. This process is under judicial review of matters of law andthe constitutional independence of the judiciary generally renders it free of politicalinterference. The legal system is considered slow but fair and recently a change ofgovernment was precipitated by a Prime Minister’s filling of the Attorney General’sposition with a close personal friend.Unlike the judiciary, the Public Service has suffered from direct political interference andhas been weakened by corruption in many departments. The departments with which aninvestor would mainly be dealing (investment registration, taxation, employment,immigration, lands, fisheries, provincial government) are all ostensibly aiming topromote and assist legitimate investment, but they vary in experience, effectiveness andspeed of doing business. Investors should ensure that documents are carefully preparedand presented, and sufficient time allowed for processing and discussion of anydifficulties with relevant officials. Any suggestion that additional unofficial paymentswould facilitate processing should be rejected.4.1.2 Land and land lease issuesA key issue for investors will be securing long-term leasehold of suitable premises. Likemuch of Melanesia, land (and associated reefs and coastal waters) in Solomon Islands isheld either under customary tenure (90%) or under a system of registration of land (10%).Registered land has gone through a process of title and rights investigation before beingregistered, and the interests in registered land recorded on the Land Register are thesubject of indemnity by the government. Leases on such lands are secure. Customaryland is more problematic. Definitions of customary land rights and boundaries arecomplex and often disputed, more so as customary authority and leadership have brokendown in many areas under pressure from monetisation, education and the physical andfinancial stresses of commercial logging. The barriers that customary tenure erect againstinvestment are appreciated and machinery does exist to convert customary tenure toregistered land, though this requires extensive investigations of traditional use rights andcommunity history. If attempting to acquire a registered interest in customary land, aninvestor would need to be assured of local acceptance of the proposed investment throughextensive interactions with local leaders and communities before initiating theregistration process.In short, commercial investment on unregistered land by a foreign company would berisky and is not recommended. Conversion of customary land to registered status iscomplex and slow. Lease or purchase of an interest in land that is already registered, andhas been or is now in use in some form of economic activity, is advised as the bestsolution to acquiring premises. Such lands exist in the following locations, with thoseperhaps most suitable to pearl farming (based on habitat quality) in italics:− Shortlands (Ballalae airstrip), Gilbertese resettlement, close to Bougainville− Waghina, Gilbertese resettlement, Kagau (airstrip)17

− Manning Strait islands− Suavanao (airstrip)− NW Isabel coastline, Allardyce Harbour− Reef islands southeast of Gizo, including Nusa Ttupe (Gizo airport,WorldFish hatchery), tourist resorts and Gilbertese resettlement− South Vona Vona lagoon (Munda airport)− NW Marovo lagoon reef islands (Ramata) (airstrip)− SW Marovo lagoon (Uepi, Seghe) (Seghe airstrip)− Russell Islands (Yandina airstrip)− Sandfly Island and passage (Maravari)− Marau Sound, East Guadalcanal (airstrip) (shell jewellery, coral culture)(Tavanipupu resort)− East MakiraRegistered leasehold interests in land, including land below the highwater mark, that isadjacent areas of lagoon, shore and coral reef, will be legally secure provided theappropriate procedures under the Land and Titles Act have been followed. However, it isalways the case that good relations with local communities are crucial to successfuloperations in rural areas. It would be impracticable to make and operate any agriculturalor maricultural investment in a rural setting in a hostile social environment. It will benecessary to make sure that local communities know and understand what is proposed,that the operation is designed to provide as much participation for local people as isreasonable and practicable, business transactions with them are transparent, on fair termsas to prices and quality and are properly recorded.4.1.3 Physical SecurityIn rural locations in Solomon Islands physical security depends on a combination offactors. Regular patrolling by the police is simply not available. An investor with portableassets and stock to protect needs to take clear and non-provocative precautions againsttheft that are understood and accepted by neighbouring communities. As stressed earlier,a successful rural business must enjoy the support of the local community and efforts toinclude these people in the enterprise must be made.There is no history in Solomon Islands (or the Pacific islands generally) of expropriationof commercial investment. Governments have shown a clear understanding of thedamage such action would do the country’s chances of attracting further investment.Solomon Islands subscribes to the APEC principles on non-expropriation and is amember of the Multilateral Investment Guarantee Agency, part of the World Bank Groupof institutions, which provides financial guarantees against expropriation of foreigncommercial investments by host governments. There is no significant expropriation riskto an investment that is conducted in a commercially and legally conventional manner.4.1.4 Security of profitsThe Central Bank operates exchange control regulations under which authority toapprove and process routine trade transactions is delegated to commercial banks.18

Authorised exporters are allowed to retain funds offshore to pay for imports to minimiseinward and outward transaction costs.Capital movements require Central Bank approval, which is readily given on proof oflegal status and availability of funds, e.g. repatriation of declared dividends or of capitalon sale of an investment. Anti-money-laundering legislation requires banks to reportsuspicious transactions, and customers may be required to provide proof of their identityand nature of transactions.4.2 Taxation and incentives4.2.1 Tax structureThe profits of resident corporations are taxed at 30%, non-residents at 35%. Incalculating profit, deductions from income are allowed only for costs incurred inproducing that income and capital expenditure is not normally a deductible expense, butdepreciation is deductible at prescribed rates. 100% deduction of capital expenditure isallowed for certain agricultural, livestock and scientific purposes, and it should bepossible to make a good case for the same treatment to apply to development of pearlfarming. Tax losses can be carried forward for up to five years provided there is nochange of shareholder control.Employers are required to deduct personal income tax (PAYE) from their employees’wages and remit the proceeds to Inland Revenue. Individuals are taxed on an incrementalscale. (In this section $ means SBD) Above a personal allowance of $7800 per year,income is taxed at 11% for the next $1-$15,000, 23% for the next $15,001-$30,000, 35%for the next $30,001-$60,000, and income above this is taxed at 40%. An additionalrequired deduction is for the national superannuation fund to which employers contribute7.5% and employees 5%.Goods tax is charged though there are a number of categories of imported goods exemptfrom goods tax, including scientific and research equipment. Exemption from goods taxfor any such equipment and other specialised imports required for pearl oysterdevelopment may be possible.Import duties have been greatly reduced over the last ten years as part of tradeliberalisation policy. When a schedule of technical and scientific equipment and otherspecialised imports is available, an investor should request exemption from import dutyon the initial importation as a valuable form of assistance to undertake the investment.4.2.2 IncentivesAn Exemptions Committee of the Inland Revenue Division considers requests for taxbreaks and makes recommendations to the Commissioner of Inland Revenue. Pearlfarming’s investment cost and benefit profile is unusual and will require carefulexplanation to the tax authorities, but it should be possible to make a good case for tax19

incentive treatment that fits the likely profile. The most likely and useful business taxincentive available to a pearl farm investment appears to be a tax holiday (exemptionfrom business profits tax) for a period of up to 10 years, the actual period to be decidedon basis of the projected performance of the business. A well argued case should obtainthe maximum exemption. Many other countries offer such concessions for pioneer andrural industries, and for Solomon Island not to do so would reduce the relativeattractiveness of the country to foreign investors.As noted earlier, any pearl farming industry that develops in Solomon Islands will dependon the services of foreign seeding technicians, the majority of whom are Japanese. Inother countries regulations requiring localisation of this work has led to a variety ofproblems for the industry. A clear statement by the Solomon Islands Government thatlicensed pearl farming operators will be entitled to receive work permits for foreignseeding technicians will be an encouragement to investors with long-term investmenthorizons.One drawcard for a pearl farmer considering an investment in Solomon Islands is theexisting WorldFish aquaculture facility at Nusa Tupe, in Western Province. Any investorwho could gain access to this facility would immediately short-circuit the process ofidentifying a suitable culture site and negotiating a lease agreement, and constructingbasic operating facilities, including a hatchery. If the stock of 2-3,000 adult black-lipshell currently being maintained at the facility were made available it could be implantedwith nuclei immediately, so that the farm would commence generating revenue in twoyears rather than the usual 4-5. Spat collection and/ or hatchery production arrangementswould still need to be developed so that the size of the farm could be progressivelyincreased, but the existing stock would accelerate the process of achieving positive cashflow and profitability.A cooperative venture with the WorldFish Center should thus be a significant attractionto any investor interested in exploring pearl farming in Solomon Islands. This shouldmake it possible to leverage a cooperative venture which allows WorldFish and theSolomon Islands Government to continue research on aspects of pearl oyster biology andlife history (growth rates, spat collection success, etc) or to access research informationobtained by the commercial partner. Ultimately, if initial success was achieved at theWorldFish site, the company would need to negotiate its own site and facilities.4.3 LabourWork permits under the Employment Act and residence permits under the ImmigrationAct are required for foreign employees, including the investor himself/herself. Theexpectation will be that Solomon Islanders are used where they can already undertake therequired work or when they can easily be trained to do so. For pearl farms, policy willadvocate that local staff fill general labouring, maintenance, boat driving and SCUBAdiving roles, though seeding technicians need not be local and provision have beenproposed to ensure that they are freely able to obtain necessary work permits.20

Wages in formal jobs in rural areas range from SB$30-50 per day for semi-skilled toSB$100-$150 per day for skilled workers. The legal minimum wage in agriculture, whichincludes mariculture, is SB$3.80 per hour or about SB$30 per day.An oyster farm could expect to recruit all its unskilled and semi-skilled workers locally –this would greatly assist with maintaining harmonious relationships with localcommunities - and not be involved in transporting them to and from annual leave.Workers housed on site would receive free basic housing, water, sanitation and lighting.Supervisory and junior management pay in rural-based formal employment is in therange SB$30,000-$100,000 a year, plus free housing, water and electricity.4.4 Environmental impact assessment.Farming of pearl oysters will require an application for development consent under theEnvironment Act, 1998. The Director of Environment may require the preparation of apublic environmental report or an environmental impact assessment, which would bepublished. After periods for public reaction to such report or assessment have elapsed theDirector may issue the development consent with or without conditions, or may refuseconsent. Given the need for environmental care in the rearing of oysters and the relativelysmall scale of the shoreside installations required, it is unlikely that environmentalobjections would arise in this case.Pearl farmers operating in Solomon Islands will also be encouraged to submit anenvironmental management plan (EMP) or code of practice (COP) as part of their licenceapplication. The purpose of the EMP or COP is to reassure the Fisheries Ministry that theoperator is cognisant of the environmental risks of pearl farming, will minimise theenvironmental impacts of the operation, and has considered measures that may need to betaken in response to factors such as mass mortalities or disease outbreaks. It is expectedthat the presentation of an EMP or COP as part of the licence application will largelyobviate the need for a separate EIA by the Ministry of Environment.5 Policy, Regulation and Management guidelinesDevelopment of sound policy and regulation is essential to the successful and long termestablishment of pearl farming in Solomon Islands (see Appendix VI). In other countries,poor control of the industry has eventually led to problems and low-quality pearlsentering the market chain have lowered the overall reputation of the industry. The FrenchPolynesian authorities have attempted to put in place an industry code of practice, anactive pearl marketing campaign that serves the industry as a whole, and a comprehensivesystem of quality control and certification, in which each pearl is sold along with an X-ray demonstrating the nacre thickness, as well as a government certificate of authenticity.These measures may have helped slow down the falling image and value of FrenchPolynesian pearls, but have not completely arrested it, and the industry continues todecline. There is still a great deal of leakage, with large volumes of poor quality pearls21

continuing to enter the market. This undermines attempts by both government and largescaleproducers to maintain the rarity value and exclusive image of their product.The second most important producer in the Pacific Islands region is Cook Islands, wherethe industry was catalysed largely by developers from neighbouring French Polynesiawho brought technical skills and investment funds to the country. The Cook Islandsindustry produced about US$18 million worth of pearls at its peak in 2000, but hasdeclined since that time, with production of only about US$2 million in 2005. A majordisease outbreak at the end of 2000, attributed mainly to overstocking and poor farmingpractices, decimated the industry, and it has still not fully recovered. Cook Islands hassuffered more development problems than French Polynesia, including, in addition todisease, conflicts among farmers and persistent marketing of low-grade pearls, which hasundermined prices in general and given Cook Islands a widespread reputation as aproducer of a low-grade product. These examples highlight the importance of settingstrict controls at the outset of any new pearl venture.5.1 PolicyThe current government’s stated policy goal for the fisheries sector is ‘the developmentand sustainable utilisation of sea and marine resources to benefit and contribute to thewell being of Solomon Islanders’. The policy is accompanied by eight expected outcomesand a series of associated strategies, most of which relate to managing and increasingeconomic benefits from capture fisheries, especially tunas. None of the outcomes orstrategies make any reference to aquaculture.MFMR’s Aquaculture Development Plan (hereinafter referred to as the Plan) contains anumber of statements of policy in regard to aquaculture in general and pearl farming inparticular. The Plan recognises that the Ministry lacks knowledge and experience ofaquaculture, and that institutional strengthening and human resource development arerequired. It also acknowledges the absence of appropriate policies and regulations foraquaculture, and urges the development of these. Noting that the WorldFish Centeroperates the only aquaculture hatchery in Solomon Islands, the Plan recommends againstthe development of further hatcheries by government, although it encourages governmentsupport to the private sector in regard to hatchery development. Section 9 of the Planstates that MFMR will provide information to prospective aquaculture investors in regardto land and sea tenure, licensing, infrastructure and transportation, among other things. Inregard to pearl farming, proposed actions by MFMR are: Collaborate with WorldFish and EU to attract private investors in SolomonIslands; Maintain the ban on the wild shell trade; Implement the policies and licensing conditions developed by the EU-fundedproject; Provide extension services for the participation of local communities throughProvincial Fisheries Officer, after the establishment of private farms; Promote value added pearl oyster products particularly for rural communities inopportunities such as shell carvings or pearl mabe handicrafts.22

At present there is no policy or management framework specifically intended for thepearl farming sector. The development of such a framework for an as-yet non-existentindustry may be regarded by some as somewhat premature and liable to discourageinvestors. However in other Pacific Island countries where the pearl industry hasdeveloped the absence of any regulatory framework has led to major problems whichhave had to be addressed once the industry was already in a crisis. As with fisheriesmanagement, it is far better to learn from experience, anticipate problem areas and set the‘rules of the game’ beforehand, rather than wait until the problems occur.Properly formulated management guidelines should also be a source of reassurance tolegitimate investors with a long time horizon. Bona fide investors will prefer to operatewithin a framework in which ‘the rules of the game’ are already in place and clearlyspelled out, rather than in an uncertain environment where policy and regulations areignored until there is a crisis, or are developed according to the whims of governmentministers or public servants.5.2 LegislationSeveral government documents pertain to the management of fisheries aquaculture inSolomon Islands. Chief amongst these are the Fisheries Act (1998), Fisheries Regulations(2002) and the Ministry of Fisheries and Marine Resources’ Aquaculture DevelopmentPlan.Responsibility for the management and development of Solomon Islands’ marineresources lies with the Ministry of Fisheries and Marine Resources (MFMR). TheFisheries Act (1998) (hereinafter referred to as the Act), is the major piece of legislationgoverning fisheries and fisheries-related activities. The Act is currently (August 2008)under review, but until new legislation is fully adopted will continue to apply to anyprospective pearl farming activities. The Act provides the basic legal framework fromwhich other subsidiary controls can be derived but in itself has minimal direct applicationto the overall control of aquaculture. The Act does not distinguish aquaculture from otherfishing methods or fisheries, and the applicability of some provisions to aquaculturecontrol is unclear. The Act does however have certain relevant provisions, as follows:Section 31, Aquaculture Operations, requires the written permission of the Director ofFisheries, with or without conditions, for the setting up and operation of an aquacultureactivity. Conditions that may be specified with a written approval deal with issues such as‘the location of the aquaculture facilities and its operation, the prevention of the spread ofcommunicable fish diseases, the inspection of aquaculture sites and the provision ofstatistical information’. Contravention of the provisions of this section invokes a penaltyof up to SI$ 100,000 on conviction.Section 32, Import and Export of Live Fish, prevents the import or export of live fishwithout the Director’s permission. The section imposes an assessment on the possibleimpacts of imported live fish being released into the wild. Contravention of theprovisions of this section invokes a penalty of up to SI$ 500,000 on conviction.23

Provisions for further aquaculture control come in the form of ‘regulation makingpowers’ under Section 59, Minister’s Powers to Make Regulations, under which theMinister may regulate, in general, any fishery activity in need of or requiring control formanagement and development purposes. Section 59(1)(xiv) specifically empowers theMinister to regulate the cultivation of seaweed and other aquatic organisms, and Section59(1)(xv) empowers the licensing of fish farms and regulation of the importation of livefish.Draft Aquaculture Regulations were developed by the MFMR Aquaculture Division andsubsequently included as Part 2 of the Fisheries Regulations (2002). The Regulationsapply to the farming of a range of species, including Pinctada margaritifera, P. maximaand Pteria penguin. The Regulations describe aquaculture licensing procedure andimpose penalties upon violation of the licensing requirement. No licence is required for‘any traditional practice of breeding, farming, culturing, taking or holding of live fish oraquatic organism the purpose of which is for subsistence, personal or traditional use only’and ‘farming which is done by a local or a local community on a small scale and forsubsistence purposes only’.Under the provisions of the Regulations, any application for a licence should contain thefollowing information:details of the species, stage of the life cycle and quantity of the aquatic organism to bebred, farmed, cultured or held;plans relating to the construction, development or modification of an aquaculture facilityto which the application relates;details of the location of the aquaculture facility and of all places, if applicable, at whichthe applicant intends to breed, hold, rear, process or sell fish or aquatic life;details of the gear, tools or equipment that the applicant intends to use to take fish oraquatic life;approvals required under any other law, and;such other information as may be required by the Director.The Regulations also specify the conditions of the licence that may relate, but are notlimited, to:the species of fish or aquatic life to be bred, farmed, cultured or held;the stages of the lifecycle of fish or aquatic organism at which the same may be kept;limitation of the quantity of fish or aquatic life that may be kept or sold;the method of water discharge or waste disposal;the location of the aquaculture facilities;limitation of the use of chemicals or drugs, if any;a requirement for the lodgement of a guarantee or security to cover the cost of damagethat may be caused by the operation of the aquaculture facility.The licence is not transferable. The Director may review, vary or alter the conditions ofthe licence, or temporarily suspend a particular condition. Under specific circumstances,the Director may cancel, revoke or suspend the licence. Any person aggrieved by such adecision of the Director, or the decision not to issue or renew the licence, may appeal tothe Minister within 30 days following receipt of the notification of such decision.24

In addition to the licensing requirement, all aquaculture facilities and equipment must bebuilt, installed or constructed to standards approved by the Director of Fisheries. Forexample, all facilities need to have an effluent reservoir in which wastewater is to betreated before discharge. The Regulations also require biological means of effluenttreatment to be used (as opposed to chemical means) unless circumstances render itcostly or impractical. The Director may impose conditions to the aquaculture licencerelating to the method of water discharge or waste disposal. After inspection of thefacility, the Director may issue a certificate certifying the facility as fit and proper foraquaculture activities. Without this certificate it is prohibited to culture aquatic organismsin the facility.Only one aquaculture operation has been licensed in the last few years, a land-basedprawn farm on Guadalcanal, which is no longer operating. Because of the absence ofappropriate licensing mechanisms, this was licensed as a fish processing establishment.The only other aquaculture licence thought to have been issued in Solomon Islands wasto ICLARM (now the WorldFish Center) in the early 1990s for community aquacultureprojects supported by that organisation based on the grow-out and export of giant clamsproduced in the WorldFish hatchery.A revised version of the Fisheries Regulations was prepared in 2003, but for variousreasons has never been gazetted. The existing Regulations are likely to be superseded aspart of the ongoing review of the Fisheries Act. Like the 1998 Fisheries Act, the newdraft Act as it currently stands pays only limited attention to aquaculture. There is a needto strengthen the aquaculture provisions of the new Act prior to its finalisation, and toensure that aquaculture in general, and pearl farming in particular, are adequately coveredin regulations or other subsidiary legislation. Representations and recommendations arebeing provided to the review team to this effect. A set of draft regulations has beenprepared in consultation with the Attorney General’s Chamber representatives andMFMR and these can be found as an appendix to the report on “farming policy andguidelines” (Appendix VI) produced by this project.5.3 LicencingUnder present legislation, aquaculture facilities need to be licensed under the FisheriesAct 1998. It is recognised that the Act is extremely weak in its provisions for aquaculture,and there are no specific references or regulations relating to pearl farming. Detailedregulations for aquaculture were drawn up in 2002 and revised in 2003 but have neverbeen gazetted, and are therefore not in force. The rare aquaculture operations that havebeen licensed in the past have been classified as fish processing establishments. A fee ofSB$ 10,000 was payable for each species farmed, and the licence renewable annually.The country’s fisheries legislation is currently under review and is expected to bereplaced in 2009 with a new Fisheries Act and Regulations. This is expected to include aspecific regulation for pearl farming. Although the regulation is still subject toamendment, the most significant provisions are as follows:• licences will be for an initial period of ten years. Annual renewal will extendthe licence for a further, such that a pearl farmer is always guaranteed tenureof licence for ten years;25

• licences will relate to a particular area. Relocation by more than one kilometrefrom the original site may require a new licence application (at the discretionof the Director of Fisheries);• licencing will be structured so that pearl producing farms are distinct fromshell feeder farms;• farms must be situated at least 5 kilometres apart (measured by the shortestdistance over water);• farm size at any given location will be restricted to one million shell;• pearl oyster stocking densities will be restricted to 100,000 per hectare or oneshell per cubic metre of water occupied by the farm lines;• movement of shell (spat or adult) over a distance of greater than 25 km willrequire a permit;• importation of pearl shell from other countries will be prohibited;• hatcheries will be required to have an effluent disposal reservoir;• permits will be required for the importation of algal cultures and otherbiological material.The main purpose of the proposed regulation is to protect bona fide pearl farmers fromdisease and environmental problems resulting from bad husbandry practices (such asoverstocking and indiscriminate long-range movement of shell) by other operators.Provincial business licences are also required. The weak financial condition of provincialgovernments has from time to time led them to impose unrealistically heavy licence feesand there is now a move within the national government to relieve provincialgovernments of this function.Drafts of regulations, a policy statement and licence forms that we have prepared andrecommended to the Solomon Islands’ government are included in Appendix VI.6 Investor visitsA list of pearl companies operating in the Western Pacific was prepared and submitted toan industry consultant for selection of companies most worth contacting. From thesecontacts, five companies showed interest and three were able to confirm and completetheir visits. These were: Manihiki Pearls, Cook Islands Justin Hunter Pearls, Fiji (also representing Taylor Shellfish of the US) Arafura Pearls (Australia)The three individuals who visited Solomon Islands were:• Mr. Temu Okatai – Cook Islands• Mr. Justin Hunter – Fiji26

• Mr. Andrew Hewitt – AustraliaAll three individuals operate commercial pearl farms in their own countries. In the firsttwo cases, these involve the black-lip pearl-oyster, Pinctada margaritifera; in the thirdcase, the white-lip pearl oyster, P. maxima. During the visits, the investors met with eachother and with the following agencies and individuals in Honiara and Gizo:• Hon. Nollen Leni, Minister, and Dr. Chris Ramofafia, Permanent Secretary,Ministry of Fisheries and Marine Resources• Anne-Maree Schwarz, Cletus Oengpepa and others, WorldFish Center, NusaTupe• Tony Hughes, investment consultant• Daniel Tuhanuku, Solomon Islands Chamber of Commerce• Mark Corcoran, Bank South Pacific, Honiara• Simon Tiller, Solomon Islands Marine Resources Institutional StrengtheningProject• Oliver Zapo, Deputy Premier, and Arnold Moveni, Permanent Secretary,Western Provincial Government• Antonio Lee, LKK Ltd. (seaweed exporter/ seafood industry/ building andlight industry)• Willie Veitch, Aquarium Arts Ltd• Bob Pollard, Pasifiki Services Ltd. (manager of Enterprise Challenge Fund)• Gordon Anderson, AusAID Fisheries Advisor• Mike Batty and Peter Philipson, Fisheries Development Advisors, ForumFisheries AgencyAs the visits occurred during two separate periods, some duplication of meetings wasnecessary, and not all investors met with every agency/ individual. Several meetings hadto be re-scheduled because of delayed or cancelled domestic flights (of four flights taken,three were delayed, two by more than a day).6.1 Investor FeedbackThe following information is summarised from meetings and conversations between theinvestors, people met during the course of official meetings, and informal conversations.All the visitors were satisfied that the research undertaken by the WorldFish Center hadadequately demonstrated the technical feasibility of farming for black-lip pearl oysters inSolomon Islands. The investors noted that there are two varieties of black-lip pearloyster, one of which is uncommon in Cook Islands and French Polynesia, leading to amore limited range of pearl colours from those countries. The other variety, which occurscommonly in Fiji, leads to a wider range of pearl colours, which are more valuable. Thisvariety was observed in Solomon Islands during the visit, and is seen as a favourablesign.In regard to white-lip pearl oysters, the investors noted that growth rates and husbandrycharacteristics under farm conditions in Solomon Islands have yet to be determined.Trials on white-lip pearl oyster were advised as a necessary pre-condition to theestablishment of commercial operations using this species. White pearls produced by this27

species in Australia are 5 – 10 times more valuable than those from black-lip pearloysters. However, gold and cream pearls, produced by the same species in Indonesia andPhilippines, are worth much less. It will therefore be important to establish the likelyproportion of high value pearls in the crop before any commercial investment is likely totake place.As to where to invest, there are likely to be numerous potentially suitable farm sitesaround Solomon Islands. Marine environmental conditions are generally good, althoughconcern was expressed over the numerous logging operations observed, and theconsiderable runoff and sedimentation problems they are clearly causing. SolomonIslands has seen few, sporadic assessments of water quality or the abundance of planktonon which pearl oysters feed. A routine monitoring programme of simple water qualityvariables would help identify the most suitable farming locations. There are pockets ofrelative abundance of natural pearl oyster stocks in the Manning Straits, Nggela andMarau Sound, so presumably these locations would be suitable areas for farming.However other areas may exist where conditions for growth are better, but where stockshave been fished out.A source of concern for investment in Solomon Islands remains the ease with which pearlfarmers might obtain secure exclusive rights over areas of water. All the investors havesuccessfully negotiated aquatic leases in their own areas of operation, and establishedmutually acceptable working arrangements with customary landowners. However allrecognised that, while clearly not impossible, this would be a first in Solomon Islands,and that assistance would be needed from national and provincial governments to ensurethat the requirements are understood and arrangements will be respected. At fullcommercial scale farming may require one or more areas of coastal water of 150-250 haeach.There was general agreement that, irrespective any regulatory requirements, it would bedesirable for any overseas pearl farming investor to have a local business partner whounderstood the Solomon Islands operating environment and could act as the projectinterface when dealing with customary landowners, government agencies and locallogistics and procurement. The local partner would preferably be someone with extensivebusiness experience in Solomon Islands, as well as a significant financial stake in theoperation.6.2 Commercialisation and FinancingSpecific issues that were highlighted during discussions between investors and localofficials and businessmen included issues of commercialisation and financing.Investors noted that in other pearl farming countries, significant industry consolidationhas occurred in the past few years as a result of excess production, including of lowqualitygoods, and falling prices. As a result, large numbers of small farms have mergedor been bought up by other operators, resulting in a smaller number of larger operations.In French Polynesia, 1500 ‘family farms’ have been absorbed into about 250 largerfarms: in Cook islands, the 70 or so farms previously operating are now down to about20, with numbers still declining; in Australia, the current 15 or so operators will likely bereduced to 3 or 4 in the next few years. In general, small farming operations in which just28

a few thousand shell are nucleated each year are no longer commercially viable. To besuccessful, farms need to achieve economies of scale by nucleating between 100,000 and300,000 shell each year. This of course requires significantly larger amounts of start-upcapital than would be needed for a smaller farm, and increases the risk in the event ofproject failure, especially given the long lead-time (5 – 10 years) before a pearl farmingoperation could be expected to turn a profit.The banking sector in Solomon Islands is unlikely to be a source of financing for a pearlfarming venture. The relatively high risk profile, long lead-time before profitability, andlack of hard assets that can be used as loan security all make this type of projectunattractive. This reflects the experience in other countries, where the agri-businesssector is generally financed through other means.One financing mechanism used in Australia is a Managed Investment Scheme, a taxdeferredshare-farming arrangement marketed to relatively high net worth individualswho are paying the highest marginal rate of tax. Under such an arrangement, an investorwould obtain tax exemption of up to 50% by investing in the scheme, under whichrevenues are deferred for 5-7 years. At the end of this period the investors funds plusearnings are returned to him tax-free, with an effective internal rate of return of 15% perannum during the investment period (equivalent to 30% p.a. if the tax savings are takeninto account). This system has been successfully marketed to retail investors, and hasnow begun to attract the interest of institutional investors with much larger sums toinvest. Because of likely changes in tax laws, the Managed Investment Scheme approachmay no longer be available after 2008, but institutional investors are still interested in thepearl industry, even without the tax exemptions, because of its good investment return. Itseems likely that, following appropriate due diligence (meaning field pearl farmingtrials), this mechanism could be used to raise financing for a significant commercialproject in Solomon Islands.Of particular interest was the Enterprise Challenge Fund, and AusAID businesspromotion scheme available in the Pacific and South-East Asia. The Fund is able toprovide grants to businesses wanting to establish operations or expand into eligiblecountries, including Solomon Islands. Grants range from A$ 0.1 to 1.5 million, and mustbe matched by an equivalent investment from the project sponsor. Proposals are assessedaccording to a set of criteria which are shown at www.enterprisechallengefund.org, andinclude providing communities with jobs, livelihood opportunities and services. A pearlfarming investment in Solomon Islands by an established overseas from would appear apriori to be eligible for ECF support, which would. The concept note submission deadlinefor the next round of ECF bidding is 30 January 2009.Other possible sources of investment capital might include the Kula-2 Fund, a $17million fund supported by the International Finance Corporation, the Asian DevelopmentBank, and the Commonwealth Development Corporation. The Fund is managed byAureos Capital, a private equity fund manager (www.aureos.com), and invests in selectedbusiness projects, including in fisheries, in the Pacific Islands region.29

6.3 Investor’s recommendations for next stepsAs noted above, the investors considered that under current conditions a large scaleinvestment would be required to produce a viable and profitable industry. At present theinformation that would allow someone to commit to this is extensive, but there areseveral key gaps that constitute barriers. This is particularly true in regard to the whitelippedpearl oyster, which are potentially most profitable but whose aquaculture-relatedcharacteristics in Solomon Islands have been less investigated than for black-lipped pearloysters.To meet the mixed and sometime contradictory goals of being (a) commercially attractiveand (b) providing benefits to communities, a project should be formulated to providerealistic, commercially relevant data on the establishment of a pilot-scale farm for whitelippedoyster. The pilot farm should be established in an area where wild stocks of whitelippearl shell are known to occur, as a means of ensuring suitable growing conditions.The pilot farm should commence growing significant numbers of pearl oysters undercommercial or semi-commercial conditions, with appropriate study and monitoring ofshell growth rates. Shell should initially be obtained from the wild, through purchasingfrom local fishers, and then be supplemented as soon as possible by hatchery-producedshell. Trial seeding should be undertaken to allow assessment of nacre deposition ratesand pearl colour and quality.The white-lip farming trial should be carried out in conjunction with a commercialpartner, who would provide technical direction, management advice and, importantly, onthe-jobtraining of pearl farming staff at the commercial partner’s home base. Otheractivities that could be carried out during the pilot phase include a broad programme ofplankton sampling and water quality testing to identify other potentially suitable farmingsites. Again the commercial partner would provide advice and support in this field and,given the lack of information for the country at large, would be of wider generalsignificance.In parallel with the white-lip farming trial, an extension programme should be establishedto support community spat collection of black-lip pearl oysters. These should be grown inparallel with the white-lip shell, and farming of both black and white pearls shouldultimately become part of the commercial operation. As well as focussing on theprovision of community benefits, inclusion of black-lip pearl farming (which has alreadybeen shown to be feasible) provides a backup or ‘Plan B’ in the event that conditionsprove unsuitable for white-lip farming.The pilot project should be suitable for financing by an aid donor or development partnerin Solomon Islands. The primary aims are assessment and demonstration of technicalfeasibility prior to commercialisation, establishment of necessary support/ infrastructurefacilities, and human resource development, through on-the-job training and through thespat collection extension programme. Grant rather than loan financing should be soughtfor this phase, which is expected to last for 2-3 years. Unlike previous research projects,there is now demonstrated private-sector interest in taking the pilot results to acommercial phase.Provided that growth rates and other farming characteristics of white-lip pearl shell aresuitable, the trial project should scale up to full commercial operation after 2-3 years, in30

partnership with the identified commercial partner, who would be primarily responsiblefor raising investment capital and taking over project management. It may be appropriateto also seek other partners in the venture, especially in regard to the black-lip farmingcomponent, and in order to have the involvement of local business interests. This mixedprivate-public approach would overcome the existing barriers to investment that havebeen identified by this programme.7 ConclusionOverall, after considerable research, information gathering and consultation within theindustry and legislators, the conclusions of our project are that there are few naturalbarriers to successful pearl farming in Solomon Islands. It is clear that pearl farmingneeds to be introduced with great care to ensure that the best investors are attracted andthat conditions are set up to ensure that they are free to produce high quality product.Two areas at present remain barriers to investment. These revolve around the paradoxthat a large investment is required under the current state of the pearl farming industry tocreate a profitable enterprise, yet that this is a new enterprise for Solomon Islands thatwould be best carried out slowly.The best prospects for establishing pearl farming are if a small amount of newcommercially targeted research is undertaken to address uncertainties as to the ability toproduce high quality white pearls in good numbers, as well as a variety of colours ofblack pearl, and for sufficiently strong financial incentives to be put in place by SolomonIslands Government and their international aid partners to attract long term investment.A pilot project suitable for financing by an aid donor or development partner in SolomonIslands, and in conjunction with a commercial partner, is recommended to address theseuncertainties.Provided that findings are positive, the trial project should scale up to full commercialoperation after 2-3 years. The identified commercial partner, would be primarilyresponsible for raising investment capital and taking over project management. Thismixed private-public approach would overcome the existing barriers to investment thathave been identified by this programme.How the industry is developed and the arrangements made for use of custom waters andinvolvement of local communities in the various stages of the pearl production processwill then determine the extent to which it will truly contribute to rural development andincome generation.31

Report on an EU project grant to the WorldFish Center and theSolomon Islands Ministry of Fisheries and Marine ResourcesStimulating Investment in Pearl Farmingin Solomon IslandsReport I. Past research and development onblacklip pearl oysters in Solomon IslandsPrepared by:Ian HawesWorldFish CenterGizoPatrick MesiaMFMRHoniaraMinistry of Fisheries andMarine Resources1

Stimulating Investment in pearl farming in SolomonIslandsReport I. Past research and development on blacklip pearloysters in Solomon IslandsContentsContents. .................................................................................................................... iSummary................................................................................................................... ii1. Introduction ....................................................................................................... 11.1. Information sources ................................................................................... 12. History of blacklip trade in Solomon Islands...................................................... 23. Nationwide surveys ........................................................................................... 34. Farming of blacklip pearl oysters in Solomon Islands; spat collection................ 42.1 Spatial distribution of spat.......................................................................... 42.2 Different types of spat collector ................................................................. 72.3 Seasonal pattern of spatfall......................................................................... 82.4 Inter-annual differences ............................................................................102.5 The effects of immersion time on spat collections .....................................112.6. Hatchery production of spat ......................................................................133. Spat grow-out ...................................................................................................143.1 Development of intermediate culture.........................................................143.21 Hatchery-reared spat in intermediate grow-out ..........................................154 Juvenile growth ................................................................................................174.1 Growth to seeding size..............................................................................174.2 Morphometics of Solomon Island blacklip pearl oysters............................195. Pearl production ...............................................................................................195.2 Bead sizes.................................................................................................205.3 Retention and mortality after seeding ........................................................215.4 Pearl yield and quality...............................................................................215.5 Seeding of hatchery-produced spat............................................................235.6 Improving yield from Solomon Island pearl farms ....................................236. Bio-economic model of pearl farming in Solomon Islands................................237. References........................................................................................................27Appendix 1. Evaluation of the pearls from the 1997 (first) seeding...........................28i

Summary• Historically, the blacklip pearl oyster (Pinctada margaritifera) has been ofcommercial importance in Solomon Islands through the trade in mother of pearl. Atits peak in 1991, 45 tonnes of shell were exported, valued at more than SBD600,000.This trade effectively finished in 1994 with the imposition of an export ban; the banremains in place to the time of writing.• Research into the possibility of farming the blacklipped pearl oyster began inthe early 1990’s, following the closure of the wild fishery for this species and P.maxima (the goldlip pearl oyster) as mother of pearl. The research first focussed ondeveloping spat collection techniques, moved on to husbandry of young oysters andeventually to trial seedings and pearl production. Although all aspects of the researchwere successful, to date no commercial farming of P. margaritifera has beenattempted in Solomon Islands.• It was found that spat could be collected easily and cheaply using simple meshcollectors strung on lines. The best settlement of spat was found to occur where theywere deployed in clear water, with moderate currents and at least 35 m from fringingreefs.• Trial spat collections were mad at 24 sites in seven regions around SolomonIslands. No difference in spatfall was found between regions, though significantdifferences between sites were found. Blacklip pearl oysters are spread throughout thearchipelago. Two of the best sites for spatfall, Gizo and Noro, are located in WesternProvince, close to the WorldFish Center’s research facility at Nusa Tupe; these siteswere used for all further research.• Long term records of spatfall at these sites show year-round recruitment,peaking during the summer months (November-February). There is some year-to-yearvariation in the exact timing of the recruitment peak and its strength. Long termaverages of 4-5 spat per collector, of mean size 8 mm (geometric mean) were found atsites near Gizo and Noro.• Of importance to Solomon Island spat collection is the high rate of predationon settled spat. Collectors accumulate not only spat, but also predatory gastropods(Cymatium spp.), crabs and flatworms. Research suggests that after three months inthe water, the number of spat on collectors begins to fall as losses exceed recruitment.• To counteract the problem of predation, an intermediate culture phase wasintroduced, which sees spat removed from collectors at a small size and deployed inbaskets for 3-4 months. After this period they attain a size suitable for drilling andstringing onto ropes in helical culture. After another four months they are ready to behung, in pairs, on dropper lines• 12-18 months after capture, spat attain sufficient size for pearl implantation.This is substantially faster than in some other pearl-producing areas, such as the CookIslands, where similar growth would take 22-24 months.ii

• Limited trials of pearl implantation showed that pearls of sufficient quality tobe sold at auction could be produced with 12-18 months of implantation. Most pearlswere silver grey in colour.• Two different seeders had markedly different degrees of success in seedingSolomon Islands oysters. The most successful had an average mortality rate of

1. IntroductionBlacklip pearl oysters are of considerable importance to aquaculture in the tropicalsouthwest Pacific. Their value comes mainly from the use of live, mature shell for theculture of pearls and in the last two decades this has provided substantial andsustainable incomes for communities in remote parts of French Polynesia, CookIslands and, most recently, Fiji. Widely distributed in Solomon Islands, the harvestand sale of blacklip oyster shell as mother of pearl (MoP) was a significant ruralindustry (Richards et al., 1994). Dwindling stocks led to the closure of the MoPfishery in 1993, even though substantial catches were still being made (Richards et al.,1994). It was hoped that this closure would ensure that sufficient stock remained toeventually replenish the wild population and to ensure that sufficient spat could beharvested to support a pearl farming industry. The hope that pearl farming could offerlong-term sustainable income opportunities for rural communities in Solomon Islands,one of the Pacific’s two poorest countries, in a way that exploitation of wild stocks forMoP could not, was the driver for both the original research programmes, as well asthe current project.This report deals only with known information on blacklip pearl oysters. Subsequentreports from this project will describe other aspects that relate to the viability of pearlfarming in Solomon Islands. These will, for example, deal with the white or goldlippearl oyster (Pinctada maxima), environmental conditions, on the investment climatein Solomon Islands and the legislative and policy framework under which pearlfarming will operate.1.1. Information sourcesInformation currently available from Solomon Islands on blacklip pearl oysters(Pinctada margaritifera) and their potential culture comes from three main sources;records of past exploitation, occasional resource surveys that have included blacklippearl oysters; and research on culture of blacklip oysters in Solomon Islands. Statisticson past exploitation are limited to export tonnage and value collected by the StatisticsUnit of the Ministry for Fisheries and Marine Resources. Spatially resolved data fromwithin the country, by island or by island group are not available. However, sinceexport appears to have been through a single point, Honiara, these records are likelyto reasonably accurately reflect the tonnage exported. Of the various resourceassessments that have been undertaken the only recent, nationwide one that we areaware of is that coordinated and funded by The Nature Conservancy (TNC) in May-June 2004. All of the information on pearl farming in Solomon Islands is derived froma research project carried out in the period 1993-1997 by the WorldFish Center(previously the International Center for Living Aquatic Resource Management –ICLARM) in collaboration with MFMR and funded by the Australian Centre forInternational Agricultural Research (ACIAR). After 1997, through to the present,WorldFish continued research on blacklip pearl production, supported through its ownfunds, albeit at a reduced level.1

2. History of blacklip trade in Solomon IslandsSome small scale trading and exchanges involving blacklip and other oyster shells, aswell as copra, ivory, nuts, sandalwood and tortoise shell took place in the early historyof Solomon Islands. However, there was no proper record kept, and thus no figurescan be estimated on the amount and value of the shells traded during those earlyyears.The only up to date record of blacklip exports from the Solomon Islands was a listproduced by the Statistics Division of the MFMR, on all marine species exportedfrom the country. Reports on blacklip only show figures starting from 1983 to 1994(Figure 1). For a decade from 1983 export volume fluctuated around a mean of 30,000kg (equivalent to approximately 50,000 shell at 0.6 kg per shell 1 ). No data areavailable on fishing effort between years, nor on the locations form which shell came.There was no legal export of blacklip exports after 1994 because of a Government banon all pearl shell exports. It is important to note that these figures are only for exportsand does not include records of blacklip shells that are used locally and perhaps tradedas souvenir to tourists.Value ($SBD)Value: Dollars (SBD)700000Amount (Kg)60000050000040000030000020000010000001982 1984 1986 1988 1990 1992 1994 199650,00045,00040,00035,00030,00025,00020,00015,00010,0005,0000Amount (kg)YearFigure 1. Export of blacklip shell from Solomon Islands for mother of pearl.1 0.6 kg per individual based on weighing of 100 dry adult shells from the Nusa Tupe trial pearl farm.2

3. Nationwide surveysIn May-June 2004, a nationwide survey of marine resources was undertaken by theSolomon Islands Ministry of Fisheries and Marine Resources, in collaboration withThe Nature Conservancy. One section of this survey specifically looked at “FisheriesResources: commercially important macroinvertebrates” (Ramohia, 2006). In thissurvey, 66 reef sites were visited, encompassing seven provinces within SolomonIslands. At each site six, 50 x 2 m swaths parallel to the reef crest and between 5 and10 m depth were examined by SCUBA divers and the number and size ofcommercially important macroinvertebrates, including blacklip pearl oysters, wasrecorded. At 63 of these sites, a further survey was undertaken of deeper sites on thereef. In that survey, five, 50 x 5 m swaths were surveyed similarly.Only 39 blacklip pearl oysters were found in this survey, 36 at shallow sites and threeat deep sites. Of the 66 shallow sites, where 600 m 2 of reef was examined, 16 sitesyielded a single oyster, five yielded 2 oysters, two four oysters and one five oysters.The low numbers found make any confident identification of preferred regionsdifficult. Of the six provinces surveyed, Western showed the highest number of siteswith oysters, and was the main province in which more than 1 shell was found at asite (Table 1). At the deep sites, only 3 yielded oysters, in each case a singlespecimen. Overall, the surveyors suggested a tendency for more shell to be found inexposed than sheltered locations. Shell size was reported in 20-mm size bands, withthe median and modal size of the 39 individuals being 140-160 mm (Figure 2).Table 1. Number of shallow (5-10 m deep) sites examined during the TNC/MFMRresource survey, that yielded blacklip pearl oysters (BL). Figure in parentheses ispercent of sites. Note total is not the sum of the provinces, as two sites were indisputed waters.ProvinceNumber ofsitessurveyedNumber ofsites withBL (%)Number ofsites with>1 BL (%)Central 9 3 (33) 1 (11)Isabel 12 3 (25) 0Choiseul 8 3 (37) 0Western 13 8 (61)) 4 (31)Makira 10 3 (30) 0Malaita 10 2 (20) 1 (10)Guadalcanal 4 0 0Total 66 24(36) 8 (12)3

Number of Shell2018161412108642080-100 100-120 120-140 140-160 160-180 180-200Size (mm)Figure 2. Size, as dorso-ventral measurement, of blacklip pearl oyster shellencountered during the TNC/MFMR national resource survey in 2004. Samples fromall sites and depths have been pooled.4. Farming of blacklip pearl oysters in SolomonIslands; spat collectionMuch of the interest in establishing a pearl farming industry in Solomon Islands tookas its starting point culture elsewhere in the southwest Pacific, particularly in FrenchPolynesia. There, a mature industry had developed around capture of wild spat,transfer to suspension culture and implantation of pearl nuclei. However, it wasimmediately apparent that there are significant differences between Solomon Islandsand French Polynesia that needed to be accommodated in transferring techniques. Forexample, reefs in French Polynesia there are many “closed” or “semi-closed” coralatolls. These atolls enclose large, relatively shallow lagoons which have limitedexchange with the open ocean and many of the pelagic larvae released inside thelagoons tend to remain there. Pearl oyster farmers exploit this natural concentrationmechanism by collecting and growing out spat inside the lagoons. Such lagoons arerare in Solomon Islands and there are few obvious places where spat would benaturally concentrated. Thus from the outset, identification of patterns of spatsettlement (location, timing and strength) was identified as the highest researchpriority.4.1 Spatial distribution of spatThe distribution of spat around Solomon Islands was investigated by Friedman et al(1998) through the deployment of spat collectors at 24 sites in seven regions,spanning 500 km of the Solomon Islands archipelago (Figure 3, Table 2). Collectorswere deployed on seven occasions between January 1994 and July 1996. At each site,4

10 spat collectors were attached at intervals along a 100 m longline made of 12 mmpolypropylene rope. The most commonly used collector comprised a 0.8 m 2 panel of55% shade mesh, folded concertina-fashion, threaded and tied in a bundle withmonofilament line. Spat collectors were deployed every three months, and harvestedsix months later.The longline to which collectors were attached was positioned perpendicular to thereef, with one end tied off to coral heads at approximately 5 m depth, and the otheranchored in approximately 25 m water depth. Anchor lines and sub-surface buoys, at20 m intervals, were used to hold the longline at a depth of 3 m (Figure 4).Figure 3. Sites used in the study of spat collection around Solomon Islands.Figure 4. Arrangement of spat collectors and longlines at each of the collection sites.5

The first series of deployments (Jan 1994 – Jul 1994) were made at 3-4 sites in eachof 5 regions; Gela, Seghe, Noro, Gizo and Malaita. From October 1994 to the lastdeployment of the study in January 1996, Seghe was dropped and two extra regions,Santa Isabel Island and Shortland Islands (3 sites in each) were added, making thedirect comparisons of spat yields complex. Table 2 provides an overall summary ofspatfalls.Table 2. Average spatfall per deployment (~10 collectors) at each of the sites.Region Site Total Live DeadGela Siriana 14.7 6.1 8.6Hararo 17.0 11.9 5.1Buena Vista 26.0 16.4 9.6Seghe Runway 0.0 0.0 0.0New Mitchi 0.0 0.0 0.0Uepi 2.0 1.0 1.0Noro Tambaka 0.0 0.0 0.0Noro 2.6 2.0 0.6Boeboe 1.3 0.6 0.7Outer 66.5 36.5 30.0Gizo Sageraghi 15.9 10.7 5.1Liapari 2.0 0.0 2.0Valapata 23.4 11.0 12.4Nusa Tupe 53.3 31.3 22.0South Malaita Ai’arai 12.3 6.4 5.9Pipisu 3.1 2.4 0.7Kau 0.5 0.5 0.0Warokai 9.0 0.5 8.5Ysabel Heta Heta 2.5 1.5 1.0Lelego 11.3 4.3 7.0Vohinari 53.0 40.0 13.0Shortlands Toumoa 37.7 25.3 12.3Tagarai 28.3 16.8 11.5Samanago 16.0 11.5 4.5The wide and overlapping ranges of spatfalls at sites within regions (Table 2) meantthat no statistically significant difference between regions could be detected fromthese data (ANOVA). However, statistically significant (at p>0.05) differencesbetween sites within regions were found, indicating that site quality varies acrossSolomon Islands, but that “good” sites could be found throughout. Seghe was anexception, though low catches there appeared to be related to poor water quality in theMarovo Lagoon where sites were located.The authors attempted to define characteristics of a good collection site. UnlikeFrench Polynesia, all enclosed lagoons sampled in Solomon Islands were poor spatcollection habitat and collectors there fouled rapidly with algae. Lagoons in SolomonIslands are often surrounded by high ground with substantial rainfall and run-off ofsediments and nutrients (especially after logging has been carried out). This wasthought to be the source of high turbidity and fouling algal growth that affected alllagoon collectors in Solomon Islands.6

On a local scale, it was found that collectors deployed close inshore consistentlyrecruited far fewer spat than those offshore. Offshore sites tended to have clearerwater and greater water movement and probably suffered less predation by reef fish.Overall, factors which have been found to correlate with large spat hauls are;• sites close to, but offshore of major reef systems• clear water,• moderate current flow,• water depth > 15 m,• at least 35 m from the nearest reef.Sites with these properties can be found throughout Solomon Islands.Several other observations made during this study triggered further research,particularly the observations of variable catches between types of spat collector, highspat mortality (Table 2 shows 47% of recovered spat were dead) and an apparentseasonality in spatfall with a summer maximum. Table 2 indicates how two of thebest spat collection sties were at Gizo and Noro. These are conveniently locatedwithin 1 h of the WorldFish laboratory at Nusa Tupe and were selected for furtherresearch to address these observations.4.2 Different types of spat collectorSeveral types of spat collector have been tried at the Gizo and Noro sites. The mostcomprehensive investigation into this compared two collector designs and two kindsof material (Figure 5); bundles of shade mesh or plastic sheet, either inside protectivemesh bags made of 2 x 5 mm netting or with no protective bag (Friedman and Bell,1996). The two material types were deployed as 1.6 m 2 lengths, either folded upconcertina-fashion (shade mesh) or cut into strips (plastic sheeting). Twenty of eachtype of collector were deployed, 10 of each inside protective mesh bags and ten ofeach with no bag. Thus 10 replicates of each of four treatments were arrayedrandomly along a longline and immersed for a six-month period.On harvesting, the number and size of spat collected were recorded, together with thenumber of spat predators associated with each collector. Over twice as many spatwere collected onto collectors made from mesh as onto plastic sheet, but bagging thecollectors made no difference to catch rate. The type of material had no consequencefor the recruitment of predators to the spat collectors and bags offered no protectionfrom predators – rather predators tended to be retained inside the “protective” bags.Other types of spat collector were also tried, including “rope” collectors similar tothose in use in some French Polynesian farms and multiple mesh collectors. Ropecollectors comprised a bundle of five, 500-mm lengths of spat rope, folded in half andsecured at the top. Shade piece collectors comprised four, 0.2 m 2 sheets of shademesh secured onto a 1.15 m length of line. Neither of these alternative collectorsperformed better than the standard concertina shade mesh sheet.Some attention has been given to the orientation of longlines. It has been found thatlonglines should be deployed perpendicular to the current. This increases yield andminimises tangling of the lines.7

Figure 5. The two basic types ofcollector compared in the Friedman andBell (1996) study. Twenty of each typewere deployed, half in protective meshbags and half open. The plastic sheetingwas more effective than the shade meshand the bags proved to have noprotective effect.4.3 Seasonal pattern of spatfallFrom June 1997 to October 2003, ten spat collectors were deployed at three sites closeto Gizo and four sites in Noro for two month immersion times, every two months. Onharvesting the collectors the spat were counted and measured. The same collectortype was used throughout, and the same staff were responsible for all practical aspectsof the collection; this makes this an excellent dataset from which to extract seasonalpatterns of settlement.To examine the seasonal pattern of spat settlement we first normalised for theconsistent differences between sites by dividing the catch for each period at each siteby the overall median catch for that site. The normalised catch from all of the sevensites were combined and plotted against month as a single plot (Figure 6). A timecatchrelationship was then determined by least-squares regression analysis. The bestfit to the data was obtained with a sine function;Catch = 1.8 + 1.34·sin(2·π· (Month)/12+7.9)…………..(equation 1)8

3025Normalised catch201510500 2 4 6 8 10 12MonthFigure 6. Seasonal pattern of spat collection during the 1997-2003 period. Each dotrepresents a single site, with the dot plotted in the middle of the two monthdeployment period. The curve is fitted by least-squared linear regression.Figure 6 and equation 1 point to a cyclical pattern of recruitment to spat collectors,with a minimum in winter and a maximum in collectors deployed from Octoberthrough to February. There was no period of the year in which no spat recruited,suggesting a prolonged breeding season. In the limited experience of Solomon Islandhatcheries, operating at ambient temperature, the life of blacklip pearl oyster larvaeprior to metamorphosis is around 25-30 days, suggesting a wild spawning peak inSeptember-December.31.531.05 m15 m30 mTemperature ( o C)30.530.029.529.028.5Feb Mar Apr May Jun Jul AugFigure 7. Water temperature at three depths in the Nusa Tupe lagoon for the first halfof 2007. Boxcar smoothing has been applied, using the running 3.5 h mean(individual records are at 30 minute intervals.9

Seasonal temperature variation is slight in Solomon Islands. An incomplete annualrecord for 2007 shows a maximum of close to 31 o C in May, falling with the onset ofwinter winds, lower insolation and air temperatures to 29 o C in July (Figure 7). Theonset of the spawning peak in September is likely to coincide with the annualtemperature minimum. Very little vertical temperature structure is evident in figure 7,with occasional period of weak temperature stratification that last for a few days toone week.4.4 Inter-annual differencesOengpepa et al., (2006) examined inter-annual differences in spat collection at sites inNoro and Gizo using an eight year dataset from 1997 to 2005. These data were atemporal extension of the dataset described in section 2.2, based on 10, 0.4 m 2 shadecloth bundles attached to a longline as in figure 4.These data are plotted as figure 8and show the annual summer peak described above – though it is clear that in any oneyear the peak can be more pronounced than in the long term average of figure 6.Figure 8 indicates how the exact size and timing of the peak varies from year to yearbut show no obvious trend or periodicity. The range of peak spatfalls varied overmore than an order of magnitude, with median values of 3.8-4.8 spat per collector.The latest a peak occurred was in collectors harvested in March, the earliest inDecember.Table 3. Mean, maximum and minimum sizes of annual spat peaks (as spat percollector) on collectors deployed at Gizo and Noro from 1997-2005.Measure Noro GizoMean 5.8 5.5Median 3.8 4.8Maximum 19.6 11.1Minimum 0.4 1.410

30Spat collector -125201510a. NoroLive spatTotal spat501997 1998 1999 2000 2001 2002 2003 2004 2005 200630Year25b. GizoSpat collector -1201510Live spatTotal spat501997 1998 1999 2000 2001 2002 2003 2004 2005 2006YearFigure 8. Mean abundance of spat (total and live) on collectors at a) Noro and b) Gizoin the Western Province of Solomon Islands. Error bars are 95% confidence limitsaround live spat.4.5 The effects of immersion time on spat collectionsWhile it might appear logical to expect that the number of spat collected and the sizeof those spat will increase with duration of immersion – as more spat recruit andrecruits grow – this has proven not to be the case (Figure 9). Data in figure 9 wereobtained by sequential harvesting of spat collectors deployed in December 1995 after3, 4, 5 and 6 months (Friedman and Bell, 2000). The decline of numbers from threemonths onwards indicates a net loss of spat from the collectors i.e. losses exceededrecruitment. In a repeat of this experiment one year later, the authors found a similarresponse, though the number of spat peaked at four rather than three months,suggesting a longer or delayed recruitment relative to the first experiment.11

Figure 9. Total (blank columns).and live (solid columns) abundance, ± standard error,of blacklip spat harvested from collectors after 3, 4, 5 and 6 months at Gizo and Noro.The mean size, as dorso-ventral measurement ± standard error of live spat harvestedeach month is also shown.As well as indicating a net loss of spat from the third month onwards, figure 9 alsoshows that this loss appears to prevent the mean size from increasing. Size-frequencyplots from this study (Friedman and Bell, 2000) indicate that after three months mostspat were

Figure 10. The number of Cymatium, a significant predator on spat, on collectorsafter four months (blank columns) and 6 month (solid columns) at four collectionsites. Asterisks signifiyt significant differences between blank and solid columns(ANOVA p

The third attempt at spawning yielded approximately 2000 spat, which weretransferred to the Nusa Tupe research centre for experimental grow-out. Furtherexperiments in hatchery culture were terminated when the Aruligo site was damagedduring the ethnic tensions of 2000.5. Spat grow-out5.1 Development of intermediate cultureThe high mortality of spat on collectors in Solomon Island waters means that thelonger the spat collectors are deployed (after 3-4 months) the fewer spat are returned.Not only this, but there is little to be gained in terms of increase in average spat sizefrom prolonged immersion of spat collectors. Thus the strategy used in many pearlfarming locations of leaving spat on collectors until they are ready to be hung on linesmay be inappropriate. Friedman and Bell (2000) found that mortality was 42% forspat left on collectors between month four and month six. This is higher than the 30%rate reported by Coeroli et al. (1984) for 6-12 month old juveniles in FrenchPolynesian lagoons. An experimental intermediate grow-out system has beendeveloped for Solomon Islands that takes spat from collectors at a small size andgrows them out in trays until they reach a size large enough to be strung.The benefit of intermediate growth is the increase in spat survival. Compared with the58% survival of spat left on collectors, spat larger than 15 mm survived at 82-93%when they were removed and transferred to protective cages (panel nets; Friedmanand Bell, 2000). For very small spat (

Figure 11. Intermediate culture trays with spat glued onto the base with “Superglue”.After lids are fitted the trays are suspended from long lines.Intermediate culture can also be a stepping stone to helical culture. In helical culture,small shell are drilled close to the byssal opening, threaded onto low breaking strainfishing line (15 lb is used at the WorldFish Research Centre) and then wound into thegroove of a 1 m length of laid rope, which is then placed inside a protective meshsleeve. We have found that spat can be drilled for helical culture at around 25-30mm, suggesting that most spat will require only three-four months of intermediateculture (e.g. Figure 12, 13). Helical culture provides enhanced growth conditionsthrough improved water movement and still provides protection from fish predation.5.2 Hatchery-reared spat in intermediate grow-outA single experiment was undertaken in 1999 to compare the growth and survival ofhatchery-reared and wild-caught spat. In each case, spat were glued inside plastictrays and incubated at random distances along a longline. Interpretation of survivaldata is complicated because the wild-caught spat suffered an unusually high rate ofmortality in the early stages of growth (Figure 14). On average, hatchery-reared spatgrew at a slightly but significantly slower rate than wild-caught spat (Figure 11).These data suggest that, should implantation of hatchery-reared spat prove successful,this could be a realistic alternative to reliance on wild capture.15

70.0060.00Size (mm)50.0040.0030.0020.0010.00HatcheryWild0.00Jul-99Aug-99Sep-99Oct-99Nov-99Dec-99Jan-00TimeFigure 12. Comparison of growth of hatchery-reared and wild caught spat inintermediate culture trays. Points are means of four replicates ± standard error.4030At captureAfter 3 months% population201000 10 20 30 40 50 60Size (DVM - mm)Figure 13. Typical performance of intermediate culture. This batch of 2000 spatwere first measured after removal from spat collectors after four months immersion(November 2005-February 2006) and grown in intermediate culture for three monthsbefore re-measuring. During that time the trays were cleaned only once. Most (thoseabove 25 mm) were then transferred to helical culture.16

% survival10090HatcheryWild8070605040302010015-Jul 14-Aug 14-Sep 14-Oct 14-Nov 14-Dec 14-JanDateFigure 14. Survival of wild-caught and hatchery-reared spat in intermediate culturetrays. Points are means of eight replicates ± standard error.6 Juvenile growthThe next major stage in farming pearl oysters is the transfer of juveniles to dropperlines or “chaplets”. The minimum size of shell for drilling and transfer to chaplets hasbeen found to be 65 mm. The minimum size for seeding oysters with pearls has been100 mm. Growth to chaplet size was discussed in section 3 and shown to require upto 8 months, depending on spat size at collection (Figure 15). The next growth phaseof relevance is that to seeding size from first hanging on chaplets.6.1 Growth to seeding sizeThere has been little research on this stage of culture in Solomon Islands. Figure 15reproduces data from an ACIAR report (Friedman et al 1997; Friedman an Southgate,1999) showing the growth of spat from a range of starting sizes over five months inintermediate culture (helical culture was not used) and growth of 80 individuals infour size classes transferred from intermediate culture to chaplets.17

Figure 15. Growth trajectories for oysters of different sizes a) entering intermediateculture and b) placed on droppers for grow-out.Extrapolation suggests that spat will take five to eight months to reach 65 mm fromrealistic spat starting sizes of 10-30 mm, followed by a further five months to reach100 mm.Growth rates of young oysters in Solomon Islands compares favourably with otherlocations. For example in Takapoto Lagoon in French Polynesia, 40-50 mm juvenilesgrew 30 mm in six months (Coeroli et al., 1984; Lintihac, 1987) and in the CookIslands, 10 mm spat grew 16.4 mm in three months (Braley, 1997).Survival of spat through intermediate culture was shown in section 3 to beapproximately 70-90%, though some batches experienced lower survival. Survival ofjuveniles is much higher. Of a batch of 2000 young oysters hung on dropper lines aschaplets at the WorldFish research centre in 2000, 5.8% were lost after ~sevenmonths. Most losses were associated with shells breaking off the chaplets; less than1% were found dead on the chaplets.18

Thus, under the regime developed in Solomon Islands, 70% of the spat taken fromcollectors can be expected to reach seeding size and this is likely to take 14-17 monthsfrom deploying spat collectors.In Solomon Islands it has been found beneficial to hang oyster in pairs. This mainlyrelates to the strength of attachment and ease of cleaning. 95% of paired oysters attachto the rope or the other member of the pair by byssal threads, compared to 5%attaching to the rope in single shell, and cleaning of paired oysters was faster. Theoptimum frequency for cleaning of oysters on chaplets for attaining maximum growthrate was every three weeks. At this frequency, growth averaged 38 mm over a sevenmonth period. This fell to 35 mm if cleaned fortnightly or at six week intervals, andto 36 mm if cleaning was every four weeks. At this frequency of cleaning, it wasfound that one full-time local staff member could look after ten longlines.6.2 Morphometics of Solomon Island blacklip pearl oystersCondition and quality of oysters can in part be related to morphometric relationships.We examined data recorded in July 1997 on the relationships between shell length,width, thickness and overall wet weight for a sample of oysters growing on chaplets atthe WorldFish research station at Nusa Tupe. We used a log-log analysis to determinehow shape changed as shells became bigger. We found that shells retained nearly thesame length to width ratio across the available size range, but became slightly flatteras they grew. On average, a 120 mm long Solomon Island cultured oyster would be124 mm wide and 30 mm thick and weigh 234 g. As it increased in size the ratio ofweight to length would decrease from that expected from isometric growth 2 . Whetherthis represents a gradual thinning of shell or a reduction in tissue to shell volume ratiocannot be determined. We have no information on gonad or tissue mass in relation toshell size for Solomon Island pearl oysters.7. Pearl productionThere has been less research on pearl production than on collection and grow-out ofspat. This is largely because of the assumption that results are more dependent on theskill of the seeder than on inherent properties of the Solomon Island oysters orgrowing conditions. This assumption is partly true, but there can be no doubt thatgrowing conditions and the characteristics of the oysters will affect the size, colourand quality of pearl that can be produced; these aspects of pearl culture in SolomonIslands are under-researched. The history of seeding pearls into Solomon Islandblacklip pearl oysters is shown in table 4. Batches 1-3 were operated on by the sameexperienced seeder from French Polynesia. Batch 4 was operated on by a lessexperienced Australian technician. In this section we summarise information on theseedings and the pearl yield. We note that, as was expected, the two techniciansachieved quite different results using the same oysters on the same farm..2 Isometric growth occurs where all dimensions remain at more or less constant ratios as the shellgrows. For weight, isometric growth should result in the weight increasing with the cube of length – inthe data analysed here it increases with the power of 2.45, indicating allometric growth and a loss of“bulk” with increasing size.19

Table 4. Summary of implantation and harvesting activities at the WorldFish Centerexperimental pearl farm.Year Month Batch 1 Batch 2 Batch 3 Batch 41997 September Implanted19981999 April Harvested Implanted2000 October Harvested Implanted20012002 April Harvested Implanted7.2 Bead sizesIn the first seeding, 1644 spat-reared shell were implanted with nuclei of 2.0 to 2.4BU (6.06-7.27 mm). In subsequent years a greater range of bead sizes were selectedby the seeding technicians (Figure 16). Similar sizes could be implanted at the twoApril seedings, while it was possible to implant slightly larger nuclei in the singleOctober seeding. This may relate to observations discussed in section 2.3 above,suggesting that the spawning peak is in September, allowing for empty gonads for theOctober seeding.50.0045.00Beads used (% of total)40.0035.0030.0025.0020.0015.0019992000200210.005.000.002.22.32.42.52.62.72.83.03.23.33.43.53.63.73.84.04.24.44.54.74.8Nucleus size (BU)Figure 16. Nucleus sizes used during operations in 1999 (1203 total shell seeded),2000 (2113 total shell seeded) and 2002 (2289 total shell seeded).20

7.3 Retention and mortality after seedingPost-operative mortality and rejection (vomit) of the implanted nuclei were muchhigher for the 2002 seeding than for any prior (Table 5). This corresponds to a changeof seeder, and we suggest that the outcomes of the first three seedings provide the bestpicture of the seeding properties of Solomon Island shell.Table 5. Post-operative mortality, nucleus rejection rate and overall survival ofoysters derived from wild caught spat. Number = total number of each type of shelloperated on. % dead indicates mortality within 4 weeks of operation, % vomit = shellsejecting nuclei with 4 weeks, % survival = shell surviving through to harvest.Seeding Shell Type Number % dead %vomit %survival1997 Virgin 1644 9 26 861999 Virgin 1494 7 21 881 st re-seed 695 5 7 722000 Virgin 1292 14 27 591 st re-seed 506 11 3 842 nd re-seed 157 24 6 69Keishi re-seed 77 17 3 812002 Virgin 1793 21 57 No harvest 11 st re-seed 1 0 0 No harvest 12 nd re-seed 62 45 24 No harvest 13 rd re-seed 20 45 20 No harvest 1Keishi re-seed 4 25 25 No harvest 11. No harvest was attempted from this seeding as for most categories fewer than 10% survived andretained nuclei.For the first three seedings, the overall average post-operative mortality of virgin shellwas 10%, with that of re-seeded shell similar (9%). Overall 25% of virgin shellvomited their nuclei, but this fell to 5-6% for reseedings. An average of 78% of shelloperated on survived to harvesting.7.4 Pearl yield and qualityAs it was considered that the quantity and quality of pearls would reflect more theability of the seeder than the quality of the oysters, relatively little attention has beenpaid to pearl yield and evaluation. The more successful of the two seeders achievedan overall return of 55% pearls per operation, though the return was highest foroysters receiving a repeat implantation (Table 6).Evaluation reports were obtained for the pearls produced from the 1997 and 1999seedings. These two reports evaluated different aspects of the pearls and only the firstone provided estimates of commercial value. This 1997-crop report, the morecomprehensive of the two, is reproduced as Appendix 1. By combining the twoevaluations, quantification of; % pearls of no commercial value, and % of variouscolours, lustres, surface condition and shape can be obtained (Table 7).In general, while one pearl was valued at AUD700, most were of low or nocommercial value, yielding an overall average expected price for 1997 of less than21

$20 per harvested pearl. The evaluation (Appendix 1) does, however, suggest that thevalue and size of the pearls could be expected to increase as production proceeds.The low value is reflected in the large proportion of pearls with low lustre, moderateto heavy pitting and poor (non-round) shape.Table 6. Yield of pearls for various seedings and categories of oyster.Seeding Shell Type NumberoperationsNumberpearls% Pearl Averageweight (g)1997 Virgin 1644 886 54 ?1999 Virgin 1494 912 61 1.481 st re-seed 695 490 70 1.762000 Virgin 1292 338 26 1.681 st re-seed 506 463 81 1.602 nd re-seed 157 88 56 2.89Keishi re-seed 77 44 57 1.84Table 7. Properties of pearls grown at the Nusa Tupe research station extracted fromtwo commercial evaluations. All are given as percentage of total crop evaluated. The1997 seeding yielded 886 pearls for assessment and from the 1999 seeding 514.Property Category 1997 1999Value None 17 61Low 82 39Moderate

7.5 Seeding of hatchery-produced spatA single trial seeding of 400 hatchery reared oysters was attempted. Unfortunatelythis was in 2002, when overall seeding results were very poor. Overall, the hatcheryderivedshell suffered a 68% nucleus rejection (compared to 57% for wild-caughtspat) and a 23% post-operative mortality (compared to 21% in wild spat).7.6 Improving yield from Solomon Island pearl farmsThe rate of growth of blacklip pearl oysters in Solomon Islands appears to be fasterthan at some other pearling locations. This may relate to the more fertile water (morerun-off and upwelling close to the large landmasses) and the near-constant warmtemperatures. This growth advantage may allow two strategies to be considered forSolomon Islands. Firstly, the size at first seeding could be increased, potentiallyallowing a larger bead to be inserted. By delaying from first reaching 100 mm to thesecond October after spat was collected, the shell is likely to have grown to >130 mm.Secondly the high rate of growth is also likely to apply to the pearl itself, and it maybe possible to harvest the pearl earlier than at other sites, perhaps after less than oneyear, which is likely to improve the chance of a round, low-blemish pearl with goodlustre.8. Bio-economic model of pearl farming in SolomonIslandsIn 1997, Friedman et al. prepared a draft budget for pearl farming in Solomon Islandsas part of a report to ACIAR (Friedman et al., 1997). This was based on the bestbiological and economical information available at the time, and was for a farmdeploying 5000 spat collectors every year and employing up to six staff (manager,foreman and four labourers). The model considered start-up and operating costs,together with pearl yield and value, and predicted that a profit would be returned aftersix years of operation, that would rise to over AUD1m after 10 years. It assumes thatthe pearl company would undertake all operations, from spat collector deployment topearl harvesting, using a contracted seeding technician. No costs were included forrental of onshore land for construction of facilities, nor costs of agreements withowners of foreshore and seabed for use of the customary land. These issues will becovered in subsequent reports from this project, dealing with conditions of operatingbusinesses in Solomon Islands, policy and legislation.In hindsight, and with the benefit of more data, several of the parameters, bothbiological and economic, that were used in the budget can be improved on, changesthat affect the net outcome of the budgeting exercise in both directions. As aconclusion to this review, we have revisited the Friedman budget and attempted to useupdated values for key parameters. Table 8 shows how most of the biologicalparameters, that is the parameters that relate to the performance of oysters, have beenadjusted downwards.23

Table 8. Modifications to the biological parameters of the Friedman model on thebasis of improved data.Parameter Original RevisionSpat per collector 6 4Spat survival through intermediate grow-out 0.8 0.7Juvenile survival in grow-out to seeding size 0.95 0.9Rejection rate of virgin shell at first seeding 0.12 0.1Pearl retention by virgin 0.7 0.6Rejection rate of shell at subsequent seedings 0.4 0.4Pearl retention at subsequent seedings 0.85 0.8Table 9. Costs incorporated into the budget for pearl farming in Solomon Islands.Unit cost refers to the cost at start-up, and Inflation rate indicates the annual rate ofincrease of these prices. Annual cost indicates the repair/servicing charge, or whetherthe item is an ongoing annual cost. Replacement time is the expected lifespan of theitem.ItemUnit cost,year 1(AUD)InflationrateAnnualcostReplacementtimeLonglines (spat) 240 ea 6% 5% 5 yrsSpat collectors 1.5 ea 6% 5% 5yrsLonglines (shell) 270 ea 6% 5% 5 yrsChaplets 2.7 ea 6% 5% AnnualIntermediate culture 18 ea 6% 5% 10 yrFuel 8000 10% YesMiscellaneous 8000 6% YesHousing 150,000 6% 5% N/ADive equipment 15,000 6% 10% 6 yrsBoats and engines 20,000 6% 10% 4 yrsLabourManager 60,000 ea 6% YesForeman 10,000 ea 6% YesLabourer 2,500 ea 6% Yes 1 per 10longlinesUsing these parameters, we used a simple spreadsheet programme to follow the costsof operating the farm over 12 years, as stock numbers and pearl production stabilised.Costs are summarised in Table 9, and the opening position is that taken by Friedmanof 5000 spat collectors deployed. By setting the annual intake of spat, this allows allother calculations to be undertaken, since the number of each item in table 9 requiredis determined by the number of spat and oysters in culture. Choice of a pearl value iscritical to the profitability or otherwise of the enterprise. Friedman used values of $60average price for the first pearl, $100 for the second and $150 for the third and fourth(all AUD). Given the valuation of the first batches of pearls from Nusa Tupe, andparticularly the proportion of worthless pearls, these now seem overly optimistic. We24

have used average values of $25, $30 and $40 for the seeding categories. These aremore conservative values, but based on data. We increased pearl values at a rate of2% per annum from year three onwards. Using these modified parameters, the farmends with a total number of shell in culture on chaplets of approximately 40,000, on atotal of 40 longlines, reaching this quasi-stable state after seven years. With one localstaff required for 10 longlines, after five years the staff stabilises at six. Note that inthis model the costs of the seeding technician are not visible, but a cost of $4 per shelland 30% of pearl value cost is deducted straight from the income.Assest costs$180,000Labour costs$160,000Consumable costs$140,000$120,000$100,000$80,000$60,000$40,000$20,000$00 2 4 6 8 10 12 14Years of production$400,000$350,000Total costsIncome$300,000$250,000$200,000$150,000$100,000$50,000$00 2 4 6 8 10 12 14Years of productionFigure 17. Predictions of possible costs and income from a pearl farm operating atsimilar efficiency to the Nusa Tupe trial farm, and based on 5000 spat collectordeployed each year.This very simple model suggests that if these are the only costs and the only income,then an operating profit (annual income minus annual costs) could be enjoyed afterseven years which would tend to stabilise at around $150,000 (AUD) after eight years(Figure 17),. It would, however, take 12 years before any net profit (cumulativeincome minus cumulative costs) was returned, by which time almost $2 million wouldneeded to have been invested. Returns would obviously vary if any of the parameterswere to change. Permutations of the parameters are innumerable, but we consideredthe most likely option for increasing profitability to be an increase in farm size. Thisis accomplished in the model by increasing the number of spat collectors deployedand this increases the profitability in a way that is not linear with the number of25

collectors. A realistic scenario might be to increase the number of spat collectors by5000 a year until a total of 20,000 are deployed in year four. Under these conditions,oyster numbers stabilise at close to 150,000 and the staffing needs increase to 16.However, labour is cheap in this model and despite increased costs, an operatingprofit is returned after six years. The potential profits increase to ~$1 million perannum and the return on investment to ~35%. An operation on this scale would stillrequire commitment of ~$2 million before a net return was evident – in this case inyear nine.The bio-economic model described in this section is simplistic, but the intention is toshow that, using realistic parameters, a sufficiently large investment in black pearlfarming in Solomon Islands, over a sufficiently long period, should be profitable.Costs for which we have no information have not been included, notably provincialand national government licensing fees, costs of renting onshore and seabed facilitiesfor both farming and spat collection and set-up costs relating to legislativerequirements. These areas will be covered in other reports from this project,specifically from consultants dealing with the business climate in Solomon Islands,legislative requirements and government policy.The Friedman/Bell model is for a pearl farm in which all of the functions are carriedout by the enterprise, from spat collector deployment to pearl harvesting. Theadvantage of this approach is control of all aspects of production. An alternativemodel, in which specific activities such as spat collection and grow-out are more orless devolved to local communities, may be preferred by Solomon Island authorities.The range of options for pearl farming in Solomon Islands will be explored insubsequent reports from this project26

9. ReferencesBraley, R.D. 1997. Finla Report, Outer Islands Marine Resources Managementtraining Project. 23-24 Asia Development Bank.Coeroli, M.D., De Gaillande, J.P., Landret & AQUACORP (D. Coatanea). 1984.Recent innovations in cultivation of molluscs in French Polynesia.Aquaculture 39:45-67.Friedman, K.J. & J.D. Bell. 1996. Effects of different substrata and protective meshbags on collection of spat of the pearl oysters Pinctada margaritifera(Linnaeus 1758) and Pinctada maculata (Gould 1850). J. Shellfish Res.15:525-541.Friedman, K.J. & J.D. Bell. 1999. Variations in abundance of black pearl oyster(Pinctada margaritifera (Linne.)) spat from inshore and offshore reefs inSolomon Islands. Aquaculture. 178:273-291.Friedman, K.J. & J.D. Bell. 2000. Shorter immersion times increase yields of theblacklip pearl oyster, Pinctada margaritifera (Linne.), from spat collectors inSolomon Islands. Aquaculture. 187:299-313.Friedman, K.J. & P.C. Southgate. 1999. Growout of blacklip pearl oysters, Pinctadamargaritifera collected as wild spat in Solomon Islands. Journal of ShellfishResearch. 18: 159-167.Friedman, K.J., J.D. Bell & G. Tiroba. 1997. Development of small-scale villagefarms for black-lip pearl oysters in Solomon Islands using wild spat.Termination report on the ACIAR special purposes grant to ICLARM.Friedman, K.J., J.D. Bell & G. Tiroba. 1998. Availability of wild spat of the blacklippearl oyster, Pinctada margaritifera, from “open” reef systems in SolomonIslands. Aquaculture. 167:283-299.Lintihac, J. 1987. Black Perlas if Tahiti. Royal Tajhitian Black Pearl Bppk.Papeete, Tahiti. 53 pp.Oengpepa, C., Hawes, I., Lane, I., Friedman, K., Bell, J.D. 2006 Long-termvariability in spat collections of the blacklip pearl oyster (Pinctadamargaritifera) in Solomon Islands. Journal of Shellfish Research. 25:955-958.Ramohia, P. 2006. Fisheries Resources: Commercially Important Macroinvertebrates.In Green., A., Lokani, P., Atu, W., Ramohia, P., Thomas, P., Almany, J.Solomon Islands Marine Assessment. TNC Pacific Islands Technical Report1/06.Richards, A.H., Bell, L.J., Bell, J.D., 1994. Inshore fisheries resources of SolomonIslands. Marine Pollution Bulletin 29_1–3., 90–98.27

Appendix 1. Evaluation of the pearls from the 1997(first) seeding.Grading and valuation of the first crop of black South Sea CulturedPearls from Solomon Islands by Rudi Zingg of Devino PTY Ltd.I certify that I have examined 886 pearls delivered to me on the 6 th August by DrJohann Bell from the International Center for Living Aquatic Resources Management(ICLARM). Dr Bell informs me that the pearls were the first crop harvested from thedemonstration pearl farm operated by ICLARM at Gizo in the Western Province ofSolomon Islands.Overall, the size and colour of the pearls are typical of those harvested from a firstseeding of black-lip pearl oysters, although there are perhaps a greater percentage ofpearls with a light olive colouration than is typical with other areas. The average sizewould be expected to increase once pearls from oysters that have been seeded for asecond and third time are included in the crop.My grading (see attached page) was done after all pearls had been polished and wasbased on size, shape, colour, surface condition (extent of “spotting”) and lustre:Size: to the nearest 1mmShape: round, near round, semi baroque, and circle (including buttons and baroque)Colour: this was variable within the range production by the black-lip pearl oyster andonly described for the most valuable pearls.Surface condition: ranging from a score of clean (0) to 5 (severe spotting)Lustre: A, B, C.The round and near round pearls were assessed individually, whereas the circle pearlswere graded into three broad categories: A,B,C.I have valued the pearls by attributing prices that I would expect them to fetch if theywere being sold directly by the producer at a large pearl auction. The prices are inAUD and would be expected to increase 3 – 4 times if the pearls were sold throughretail outlets.Although the total value of the pearls is not remarkable, there is every reason tobelieve that pearls of high quality can be produced in Solomon Islands. The coloursare attractive and acceptable and, over time, the average size of the pearls willincrease as more shells are re-seeded for a second and third time. This factor aloneshould make a great difference to the value of the crop because the size of pearlscontributes significantly to its value. Also, once experienced investors in the pearlindustry are attracted to the Solomon Islands, it is reasonable to assume that they willimprove the average quality of the pearls grown there by increasing the percentage ofround and near round pearls beyond the 10% of such pearls in this crop. Anexperienced pearling company should be able to double or treble this percentage after5 to 10 years, and also improve the surface condition and lustre of the pearls. This will28

depend mainly on the quality of the technicians (seeders) employed by thecommercial enterprise. As is evident from the attached valuation, the total value of acrop of pearls can be increased substantially by even minor improvements in thepercentages of high quality pearls. This trend has occurred elsewhere. For example,the black pearl industry in Tahiti has progressively increased the percentage of roundpearls with good lustre and clean surfaces since the development of the industry.In my view, the first crop of black pearls from Solomon Islands is encouraging.Assuming that experienced pearl farmers can be attracted to Solomon Islands, thequestion becomes not so much “are the waters around the islands suitable for growingpearls?” but “are the cost of producing pearls in Solomon Islands significantly lowerthan in other areas of the Pacific? It would be most helpful to prospective investors ifICLARM could prepare accurate costs for establishing and operating a pearl farm of,say, 50,000 oysters in Solomon Islands. Such information, combined with valuationsof further crops from the demonstration farm, should be of major assistance in alertingpearl farmers to the opportunities in Solomon Islands.Rudolf Martin ZinggPresidentDevino PTY Ltd10 November 199929

Grading and Valuation of 886 pearls from Solomon IslandsRound and near round pearls:AUDSize 12 - 13 mm:1 pce near round, 12.9mm, light peacock, clean surface, lustre B 7001 pce near round, 12.5mm, grey, clean, hammered surface, lustre B 200Size 11 - 12 mm:4 pces round, mixed colours, average spotting 2, lustre B 4008 pces near round, mixed colours, average spotting 3, lustre B 800Size 10 - 11 mm:22 pces round/near round, mices colours, av.spotting 3, lustre A and B 2,2004 pces round, mixed colours, average spotting 5, lustre C 160Size 9 - 10 mm:27 pces round/near round, mixed colours, average spotting 3, lustre B 2,160Size 8 - 9 mm:20 pces round, mixed colours, average spotting 4, lustre B and C 5006 pces near round, mixed colours, average spotting 3, lustre B 180Circle Pearls:Size >10 mm:26 pces Grade A 1,56087 pces Grade B 2,610105 pces Grade C 525Size

Report to:World Fish CenterSuitability of Habitats in the Solomon Islands andOther Regions of the Pacific for Growth of Black-Lipand Silver-Lip Pearl OystersFINALJune 2008

Suitability of Habitats in the Solomon Islands andOther Regions of the Pacific for Growth of Black-Lipand Silver-Lip Pearl OystersJune 2008Report Prepared for:World Fish CenterJalan Batu MaungBatu Maung,11960 Bayan Lepas,Penang,MalaysiaReport Prepared by:The Ecology Lab Pty Ltd4 Green StreetBrookvale, NSW, 2100Phone: (02) 9907 4440Report Number – 55/0607BReport Status – Final 5 June 2008© This document and the research reported in it are copyright. Apart from fair dealings for the purposes ofprivate study, research, criticism or review, as permitted under the Copyright Act 1968, no part may bereproduced by any process without written authorisation. Direct all inquiries to the Director, The Ecology LabPty Ltd at the above address.

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008The Ecology Lab Pty Ltd – Marine and Freshwater StudiesTABLE OF CONTENTSSummary ................................................................................................................................................iGlossary.................................................................................................................................................11.0 Introduction ....................................................................................................................................22.0 Environmental Needs of Pearl Oysters.................................................................................32.1 Introduction ...............................................................................................................................32.2 Geographic Distribution ..........................................................................................................32.3 Temperature...............................................................................................................................32.4 Salinity ........................................................................................................................................42.5 Habitat ........................................................................................................................................42.6 Type of Substratum...................................................................................................................52.7 Currents......................................................................................................................................52.8 Food Availability.......................................................................................................................52.9 Conclusions................................................................................................................................63.0 Environmental Conditions at Existing Pearl Farms..................................................................73.1 Black Pearl Farms.......................................................................................................................73.1.1 Australia ..............................................................................................................................73.1.2 Cook Islands .......................................................................................................................73.1.3 Fiji.........................................................................................................................................73.1.4 French Polynesia ................................................................................................................83.1.5 Solomon Islands .................................................................................................................93.1.6 Vanuatu ...............................................................................................................................93.1.7 Conclusions.........................................................................................................................93.2 Silver-White South Sea Pearl Farms ......................................................................................103.2.1 Australia ............................................................................................................................103.2.2 Papua New Guinea..........................................................................................................103.2.3 Cook Islands .....................................................................................................................113.2.4 Conclusions.......................................................................................................................114.0 Overview of Coral Reef and Lagoon Habitats in Key Pacific Regions.................................124.1 Australia ...................................................................................................................................124.2 Cook Islands ............................................................................................................................134.3 Fiji..............................................................................................................................................134.4 French Polynesia .....................................................................................................................144.5 Papua New Guinea.................................................................................................................154.6 Solomon Islands ......................................................................................................................17

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20084.7 Vanuatu ....................................................................................................................................194.8 Conclusions..............................................................................................................................205.0 The Effect of Habitat on Culture of Pearl Oysters..................................................................215.1 Introduction .............................................................................................................................215.2 Collection of Wild Spat ..........................................................................................................215.2.1 General...............................................................................................................................215.2.2 Black-lip Pearl Oysters ....................................................................................................215.2.3 Silver-lip Pearl Oysters....................................................................................................235.3 Intermediate Grow-out of Juveniles.....................................................................................235.3.1 General...............................................................................................................................235.3.2 Black-lip Pearl Oysters ....................................................................................................235.3.3 Silver-lip Pearl Oysters....................................................................................................245.4 Ongrowing of Adult Pearl Oysters.......................................................................................245.4.1 Black-lip Pearl Oysters ....................................................................................................245.4.2 Silver-lip Pearl Oysters....................................................................................................256.0 Conclusions..................................................................................................................................266.1 Black-lip pearl oysters ............................................................................................................266.2 Silver-lip pearl oysters............................................................................................................268.0 Acknowledgements ....................................................................................................................289.0 References ....................................................................................................................................29Tables ...................................................................................................................................................34Figures .................................................................................................................................................37The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008SUMMARYBackgroundThe European Union has funded a project entitled ‘Stimulating investment in pearl farmingin the Solomon Islands’. The objective of this project is to provide offshore pearl companieswith sufficient information to determine the potential for long-term investment in pearlfarming in the Solomon Islands. The World Fish Centre sub-contracted The Ecology Lab Ptyto prepare a report comparing coral reef lagoons and habitats suitable for growing black-lip(Pinctada margaritifera) and white-lip pearl oysters (Pinctada maxima) in the Solomon Islandswith several other locations in the Pacific, for this project. The conclusions drawn about thesuitability of coral reef habitats in these regions are based on existing information about theenvironmental needs of each species, the environmental conditions prevailing at farmlocations, the different types of coral reef and lagoon habitats in the specified regions andtheir prevailing environmental conditions and the influence of the natural environment onthe various culture phases.Environmental needs of pearl oystersThe physiology, survival and productivity of bivalves is known to vary with temperature,salinity, type of substratum, depth of the water column, silt load, water currents, primaryproductivity and pollution. The response of black-lip and silver-lip pearl oysters tofluctuations in these environmental factors, however, is poorly documented. Experimentalstudies in Australian waters indicate that adult silver-lip pearl oysters are less tolerant oflower temperatures but more tolerant of high temperatures and are capable of coping with awider range of food concentrations and more turbid conditions than their black-lipcounterparts. This implies that they may be cultured under a greater variety ofenvironmental conditions. It should, however, be noted that spat, juveniles and adults mayexhibit different responses to these environmental factors and that the physiologicalresponses of these species may vary across their latitudinal range. The review also suggeststhat little is known about the environmental conditions under which natural populations ofblack-lip and silver-lip pearl oysters grow in the South Pacific region. Most of theinformation obtained about the environmental needs of pearl oysters came from Australia orFrench Polynesia.Environmental conditions at existing pearl farmsThe most productive black pearl farms are located in atoll lagoons in French Polynesia andthe Cook Islands. Considerable information is available about the environmental conditionsin their vicinity of some of these farms. These lagoons differ markedly in total surface area,depth and degree of exchange with the ocean. The feasibility of establishing farms in othercoral reef habitats has been investigated in Fiji, the Solomon Islands and Vanuatu, andcommercial farms have since been established in Fiji and Australia. The farms in Australiautilize juvenile pearl oysters from hatcheries, whereas those elsewhere are based on wildspat or stock. Little information is available about the environmental conditions at thesefarms. The paucity of information on environmental conditions prevailing in SolomonIslands relative to Cook Islands and French Polynesia precludes an assessment of whetherconditions for pearl farming would be comparable.Silver-lip pearl oysters are currently being farmed in the northern part of Western Australia,Northern Territory, Queensland, Torres Strait Islands and in a few areas of Papua NewGuinea. The silver pearl industries in West Australia and Queensland are based primarilyon the collection of wild oysters and hatchery-derived spat, respectively. The industry inThe Ecology Lab Pty Ltd – Marine and Freshwater StudiesPage i

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008the Northern Territory is based on oysters sourced from hatcheries and wild oystersimported from Western Australia. It is difficult to assess the suitability of Solomon Islandswaters for silver-lip pearl farming because of the general paucity of information on thecoastal environment in this region and on environmental conditions prevailing in thevicinity of the Australian and Papuan farms. It is, however, worth noting that the coastalwaters off the larger Solomon Islands and the northern part of Australia are subject to heavyrainfall accompanied by freshwater runoff laden with silt.Regional differences in availability of coral reef and lagoon habitatsIn Solomon Islands, Fiji and Vanuatu, most of the coral reefs either fringe the high islands oroccur in shallow, sublittoral areas. In Papua New Guinea, approximately half of thecoastline and surrounding islands appear to be fronted by coral reefs with all reef typesrepresented, but with fringing and barrier reefs dominating. On the north-east Australiancoast, the major coral structure is the Great Barrier Reef, which comprises about 3,000fringing reefs, submerged reefs, platform and barrier reefs. There are also fringing reefsalong the Northern Territory and North West Australian coasts, a few atoll-like structureson the north-west continental shelf and coral reefs in the Houtman Abrolhos Islands, 400 kmnorth of Perth. The reefs off the Melanesian islands and off the Australian coast have arelatively ‘open’ structure and considerable exchange of water is able to take place throughthe numerous passages linking patch, fringing and barrier reefs with deeper water. In theCook Islands and French Polynesia, atolls are the predominant coral reef habitat and it is intheir ‘enclosed’ or ‘semi-enclosed’ lagoons that the majority of black pearl farms are located.This type of coral reef structure is scarce in the Central West Pacific region.Effect of habitat on culture of pearl oystersPearl oyster farming may involve several field-based operations, including collection of wildspat or stock, grow-out of juveniles in intermediate grow-out systems and on-growing ofadults, all of which are to some extent dependent on the prevailing environment.In French Polynesia and the Cook Islands, black pearl production is based on wild spat thatsettle on artificial collectors deployed in “enclosed” or “semi-enclosed” atoll lagoons forperiods ranging from six months to two years. Reasonable quantities of black-lip pearloyster spat have also been collected from ‘open’ reef systems in the Solomon Islands,particularly from sites with clear water and moderate currents that are at least 35 m awayfrom the nearest reef. Collectors deployed within barrier reef lagoons yielded surprisinglyfew spat, probably because the collectors became clogged with sediment or overgrown byalgae during the rainy season.The growth rate of juvenile black-lip pearl oysters cultured in these ‘open’ reef systems iscomparable with that observed in some of the atolls in French Polynesia and the CookIslands. However, experimental studies on growth, survival and condition of small blacklippearl oysters over a 14 month period in two contrasting environments adjacent to theGreat Barrier Reef (Australia) indicated that environmental conditions were more suitablefor the growth of juveniles at the near oligotrophic offshore location than in a mainland baycharacterised by high levels of turbidity and large concentrations of particulate organicmatter.In the Cook Islands, growth of black-lip pearl oysters has been compared experimentally atdifferent sites within a lagoon, among lagoons, in different natural habitats and underdifferent culture conditions, but results are difficult to interpret because of the experimentaldesign. In French Polynesia, the growth of black-lip pearl oysters has been compared incompletely or almost closed atoll lagoons, largely open atoll lagoons, lagoons off highThe Ecology Lab Pty Ltd – Marine and Freshwater StudiesPage ii

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008islands and in the open ocean. The growth rate of oysters and mean annual shell growthincrement were significantly greater in island lagoons and the ocean habitat than in atolllagoons. Oysters also attained a size suitable for implantation of a nucleus faster in thewater off high islands and in the open ocean than in the atoll lagoons. Differences in growthrate were attributed to the negative effects of high (≥ 30 °C) water temperatures, differencesin the degree of water renewal and food supply around the oysters. In Australia, the growthrate and survival of medium and large size oysters and condition of medium-sized animalswere significantly smaller in turbid waters adjacent to the mainland than in nearoligotrophic waters further offshore. The poor performance of black-lip pearl oysters underturbid conditions suggests that commercial culture may be less viable in this type ofenvironment.Silver-lip pearl oysters are often cultured in near-shore areas subject to large fluctuations insalinity and high inputs of terrigenous sediment and nutrients during seasonal rainfallevents. The industry is based on adult individuals of a particular size range or hatcheryderivedspat rather than wild spat, hence there is no information on the collection of spat.Reductions in salinity can have an adverse effect on growth rate of spat but not theirsurvival of spat and can also cause detachment of juveniles. There is also evidence fromAustralia that the survival and growth of juveniles is poorer in winter. The timing of theintroduction of hatchery-reared spat consequently requires careful consideration.Information about the environmental conditions prevailing at silver-lip pearl farms is scarce.Experimental studies on the growth, survival and condition of silver-lip pearl oystersundertaken in two dissimilar environments adjacent to the Great Barrier Reef indicate thatthe growth rate and final condition of oysters cultured in the mainland bay was notsignificantly different from that at the offshore location. This implies that silver-lip pearloysters are physiologically adapted to a wide range of food concentrations and that theycould potentially be cultured in a variety of habitats.Overall conclusionsAlthough black-lip and silver-lip pearl oyster farming are lucrative industries, there is asurprising lack of basic information on the influence of environmental factors on theirbiology and ecology and on environmental conditions at existing farms and their influenceon culture practices. Information on coral reef habitats within some of the specified regionsof the Pacific Ocean is also lacking. This lack of information hinders assessments about thesuitability of available habitats for growing pearl oysters in the Solomon Islands relative tothose in the other Pacific regions. Despite this, it is clear from the literature sourced that,from an environmental perspective, there is potential for farming of both black-lip andsilver-lip pearl oysters to take place in the Solomon Islands. The turbid waters adjacent tothe leeward side of the mountainous islands are likely to be more favourable for farmingsilver-lip than black-lip pearl oysters.The Ecology Lab Pty Ltd – Marine and Freshwater StudiesPage iii

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008GLOSSARY‰ – parts per thousand (salinity).°C – degree centigrade.Atoll – a ring-shaped coral reef that fully or partially encloses a lagoon and is surrounded byopen sea.Black-lip pearl oyster – Pinctada margaritifera.Chaplet – dropper rope connected to a longline from which juvenile or adult oysters areattached.GBR – Great Barrier Reef.Hoa - shallow channels separating individual narrow islands on atoll reefs.Motu - narrow islands on atoll reefs.Picoplankters - Very small, single-celled planktonic plants or animals between 0.2 - 2.0 µmlong.POM – particulate organic matter.Pseudoatoll - coral reef surrounding an inner lagoon with several islands.Pseudofaeces - Organic waste produced by filter feeding molluscs which includes faeces andrejected food particles.SFG - Scope for Growth - Energy available to sexually mature animals for growth andreproduction.Silver-lip pearl oyster - Pinctada maxima.Spat – recently-settled juvenile mollusc.SPM – suspended particulate matter.Turbidity - a measure of the degree to which the water looses its clarity due to the presenceof suspended particulates.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 1

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20081.0 INTRODUCTIONThe European Union has recently funded a project entitled ‘Stimulating investment in pearlfarming in the Solomon Islands’. The primary objective of this project is to provide offshorepearl companies with sufficient information to determine the potential for long-terminvestment in pearl farming in the Solomon Islands. Information on the following aspects iscurrently being compiled for this project:• Publications on the availability and culture of black-lip pear oysters in the SolomonIslands;• Availability and quality of silver-lip pearl oyster resources in the Solomon Islands;• Availability of suitable habitats and environmental conditions for the growth of black-lipand silver-lip pearl oysters in the Solomon Islands and pearl-producing regions of theSouth Pacific;• The investment climate in the Solomon Islands;• Policy guidelines for the development of environmentally and financially sustainablepearl farming in the Solomon Islands; and• Offshore pearl companies most likely to consider investing in pearl farming in theSolomon Islands.In February 2007, The World Fish Centre commissioned The Ecology Lab Pty Ltd to providea number of consultancy services for the EU project, including the preparation of thefollowing report comparing coral reef lagoons and habitats suitable for growing black-lipand white-lip pearl oysters in the Solomon Islands with other locations in the Pacific,specifically French Polynesia, Cook Islands, Australia, Fiji, Vanuatu and Papua New Guinea.A comparison of this type requires an understanding of the environmental needs of eachspecies and a sound knowledge of the environmental conditions prevailing at existing farmlocations, the different types of coral reef and lagoon habitats in the specified regions andtheir prevailing environmental conditions and the influence of the natural environment onthe various stages of culture. This report addresses each of these aspects in turn and drawsconclusions about the suitability of the habitats available for growing pearl oysters in theSolomon Islands relative to those in the other Pacific regions.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 2

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20082.0 ENVIRONMENTAL NEEDS OF PEARL OYSTERS2.1 IntroductionThe environmental factors that are likely to have the greatest influence on the biology andecology of pearl oysters are temperature, salinity, type of substratum, depth of the water, siltload, water currents, primary productivity and pollution (Gervis and Sims 1992). Althoughsuch factors are known to have significant effects on the physiology, survival andproductivity of bivalves (Jorgensen 1990; Gosling 2003) there have been relatively fewstudies on the responses of black-lip and silver-lip pearl oysters to fluctuations inenvironmental factors. The combined effects of temperature and salinity on embryos andlarvae of black-lip oysters from the Great Barrier Reef and effects of salinity on growth andsurvival of silver-lip spat have been documented by Dourodi et al. (1999) and Taylor et al.(2004), respectively. The influence of salinity on detachment of silver-lip spat has also beendescribed (Taylor et al. 1997). The effects of temperature and suspended particulate matter(SPM) on feeding of black-lip and silver-lip oysters from the Great Barrier Reef (GBR),Australia has been investigated by Yukihira et al. (1999, 2000). The influence of foodavailability on black-lip oysters in French Polynesia has also been investigated (Pouvreau etal. 1999a and b, 2000a and b; Loret et al. 2000a and b). When reading this overview, it isimportant to bear in mind that black-lip and silver-lip pearl oysters growing in other regionsmay exhibit different responses to those reported here and that responses of larvae, juvenilesand adults to environmental factors are likely to differ.The information that is currently available on the influence of each environmental factor issummarised below.2.2 Geographic DistributionBlack-lip pearl oysters are found in the Persian Gulf, Red Sea, Sudan, Papua New Guinea,Australia, French Polynesia, Indonesia, Andaman and Nicobar Islands, southwestern part ofthe Indian Ocean, Japan and the Pacific Ocean. This species reaches its greatest abundancein the atoll lagoons of French Polynesia and the Cook Islands (Gervis and Sims 1992).Silver-lip pearl oysters are distributed along the north coast of Australia, Burma, Thailand,Indonesia, Philippines and Papua New Guinea at depths ranging from low tide level to 80 m(Bueno et al. 1991; Gervis and Sims 1992).2.3 TemperatureTemperature determines the rate of deposition of nacre on shells and nuclei and thereforelimits pearl culture sites to areas within the optimum temperature range (Gervis and Sims1992). Relatively little information, however, is available about the optimal temperatureranges of black-lip and silver-lip pearl oysters. It should also be noted that most of thestudies on the effects of temperature on black-lip and silver-lip pearl oysters were done inwaters off the Great Barrier Reef (GBR) on the north-east coast of Australia. It is thereforenot known whether the ranges reported below are applicable throughout the species’geographic ranges.Doroudi et al. (1999) reported that normal development of black-lip oyster embryos occurredonly between 25 °C and 30 °C, that growth of larvae was optimal between 26 °C and 29 °CThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 3

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008and that temperatures greater than 35 °C were lethal for larvae. Survival of larvae wasgreatest, but growth was slow, close to 20 °C, the lowest temperature examined.Yukihira et al. (2000) examined the effects of temperature on suspension feeding and energybudgets of black-lip and silver-lip pearl oysters. They found that the clearance rate,absorption efficiency, amount of energy absorbed, respiration rate, excretion and henceScope for Growth (i.e. energy available to sexually mature animals for growth andreproduction) of both species were much lower at 19 °C than between 23 °C and 32 °C. Theclearance rate of and amount of energy absorbed by black-lip oysters declined between 28°C and 32 °C, but that of silver-lip oysters remained fairly constant. The increase inabsorption efficiency of black-lip pearl oysters was less marked that of silver-lip pearloysters between 19 °C and 32 °C. The respiration rate of black-lip pearl oysters increasedmarkedly between 28 °C and 32 °C, whereas that of silver-lip pearl oysters only increasedslightly over this range. Black-lip oysters excreted less energy than silver-lip oysters overthis temperature range. High temperatures had a marked effect on the rate of ammoniaexcretion in both species. The Scope for Growth of black-lip pearl oysters was adverselyaffected by both low (19 °C) and high (32 °C) temperatures, whereas that of silver-lip oysterswas affected mostly by low temperatures. On the basis of these results, Yukihira et al. (2000)concluded that the optimum temperature ranges for black-lip and silver-lip oysters were 23 -28 °C and 23 -32 °C, respectively.In contrast, to the results from the GBR, temperature appears to have no effect on thephysiology of black-lip oysters in Takapoto Atoll, probably because the temperature range isonly 26 ºC to 30 ºC (Pouvreau et al. 1999a). The feeding responses of black-lip oysters,however, may differ in Polynesian atolls with wider annual temperature ranges (e.g. 22 – 32°C) or larger quantities of POM Pouvreau et al. (2000a).2.4 SalinityPearl oysters prefer full salinity seawater, but can tolerate a wide range of salinities (Gervisand Sims 1992). Taylor et al. (1997) found that exposure of juvenile silver-lip oysters toreduced (25-30 parts per thousand, ‰) or elevated (40-45 ‰) salinities resulted in greaterdetachment from the substratum than in ambient (34 ‰) seawater. Subsequent studies onthe effects of prolonged (20 day) exposure to salinities ranging from 25-45 ‰ have shownthat the survival of spat did not vary across this range, but growth was significantly reducedat 25‰, 40 ‰ and 45 ‰ (Taylor et al. 2004). Growth was also found to be significantlygreater at 30 ‰ than at ambient salinity, suggesting that the optimal salinity range forrearing of spat may be between 30 ‰and 34 ‰. Dourodi et al. (1999) found that normaldevelopment of black-lip oyster embryos and optimal survival and growth of larvae tookplace between 25 ‰ and 35 ‰. These studies suggest that the reductions in salinity to levelsas low as 25 ‰ that occur during the rainy season in northern Australia may have anadverse effect on the growth rate of silver-lip spats.2.5 HabitatBlack-lip pearl oysters are most abundant around the low tide mark, but extend to depths of40 m in the Torres Strait and Polynesia (Gervis and Sims 1992). This species is typicallyfound in oligotrophic coral reef and atoll water, where primary productivity and turbiditylevels are often low. In the Solomon Islands, black-lip pearl oysters are typically found inshallow water (1-2 m) (G Tiroba pers. comm. in Richards et al. 1994).The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 4

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Silver-lip oysters are found in a variety of environments, ranging from shallow seagrassbeds to deepwater reefs and on sedimentary substrata adjacent to continents and largeislands, where the water is often turbid due to large inputs of terrigenous sediments andnutrients and higher productivity levels (Gervis and Sims 1992). They have been found atdepths varying from 0 - 80 m (Gervis and Sims (1992) and occur at depths of 10 - 60 m in theSolomon Islands (G Tiroba pers. comm. in Richards et al. 1994).2.6 Type of SubstratumThe distribution of pearl oysters is thought to be limited by the availability of suitablesubstrata (Gervis and Sims 1992). Black-lip oysters are scarce or absent in some FrenchPolynesian lagoons, because of limited substratum availability (Service de Pêche 1970 inGervis and Sims 1992). Some workers indicate that this species is absent from soft bottoms,however, there is a report of them occurring only on sand in one of the Kiribati atolls. Spatof silver-lip oysters only settle on hard substrata and an aggregate or seabed with a hardcrust covering a soft substratum is considered an ideal substratum in Western Australia.They also mentioned that adult silver-lip oysters occur on mud or sand in association withseagrass beds and that they may be shifted to these areas when their byssus detaches.In Western Australia, silver-lip pearl oysters are found on areas of seabed consisting of flatbasement rock with crevices which are generally covered by a few millimetres of finesediment and a variety of organisms which extend up to 1 m off the bottom (Wells andJernakoff 2006). Several distinct habitats are recognised within the pearl fishing groundsand these have been assigned the names “potato” bottom, “garden” bottom, “collar“ and“asparagus”, reflecting the form of the dominant inhabitants. Commercial quantities ofsilver-lip oyster are found only on potato bottom and garden bottom habitats. “Potato”bottom is dominated by a low, round densely-packed ascidian species, followed by a varietyof sponges ranging in size from a few centimeters to 0.5 m high. “Garden” bottom ischaracterised by large hydroids (up to 1 m high) covered by a variety of other, colourfulorganisms, hence the name. Sponges, soft corals, sea pens, crinoids and a large species ofascidian are also found on “garden” bottoms. The composition of the habitat varies withdepth, with “potato/asparagus” habitat predominating at 9-12 m, “potato/garden” bottomsoccurring at 13-16 m and depths of 16-34 m being characterised by “garden bottom” (Hartand Friedman 2004).In Solomon Islands, silver-lip pearl oysters have been found in a variety of habitats,including mud, sand, gravel, coral rubble and various mixtures thereof (The Ecology Lab2008)2.7 CurrentsGervis and Sims (1992) pointed out that silver-lip oyster beds often occur in areas with verystrong currents and that growth of both species is greater in areas with strong currents.2.8 Food AvailabilityPearl oysters are filter-feeders and obtain their food resources by actively clearing organicparticles, such as phytoplankton, from the water column. The quantity and quality ofnatural SPM has been shown to affect feeding and food utilization in black-lip and silver-lippearl oysters from the Great Barrier Reef (GBR) (Yukihara et al. 1999). Both species reducedtheir clearance rates and absorption efficiency, but increased their production ofpseudofaeces when exposed to large concentrations of SPM (i.e. high turbidity). UnderThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 5

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008turbid conditions, silver-lip pearl oysters had significantly greater clearance and ingestionrates and absorbed food more efficiently, but produced pseudofaeces at a slower rate thanblack-lip oysters. Silver-lip oysters also had a greater SFG under turbid conditions. Underthese conditions, silver-lip pearl oysters are clearly more efficient suspension feeders thanblack-lip oysters. Black-lip oysters, in contrast, had a higher clearance rate, retained smallerparticles and ingested a wider size range of particles at low SMP concentrations than silverlipoysters. This study indicated that the optimum SPM concentrations for black-lip andsilver-lip oysters were < 5 mg l -1 and 3-15 mg l -1 , respectively and their optimum particle sizeranges were > 3 µm and > 4µm, respectively. This information may be useful for selectingoptimum pearl culture sites.The feeding responses of black-lip oysters has also been assessed in Takapoto atoll lagoon,French Polynesia, an oligotrophic system, dominated by small (< 2 µm) primary producersand characterised by very small quantities ( 1 µm. The retention efficiency of the oysters was found to be 98% for particles > 5 µm, butto decline to 35% and 15% for 1.7 µm and 1 µm particles, respectively (Pouvreau et al.(1999b). In this system, high clearance rates (200 to > 1500 l d -1 for animals aged 1-4 years)appear to compensate for the poor food quality. The feeding responses of black-lip oysters,however, may differ in Polynesian atolls with larger quantities of POM Pouvreau et al.(2000a). It is also worth noting that black-lip oysters from the GBR retain about 70% of 1.7µm particles (Yukihira et al. 1999) and exhibit a lower clearance rate than those in Takapotoaatoll (Yukihira et al. 1998).Loret et al. (2000a) have shown that the black-lip oysters in this lagoon are selective feeders,consuming large amounts of nanoflagellates, one of the most abundant groups of primaryproducers, but only small quantities of picocyanobacteria, the other dominant group,probably because they are too small to be retained. They also showed that cryptophytes,one of the less abundant phytoplankton groups, were consumed preferentially and that thedigestion efficiency for chlorophytes and dinoflagellates was poor. These oysters are alsocapable of consuming and retaining ciliates (Loret et al 2000b). These results conflict withGervis and Sims (1992) suggestion that pearl oysters are non-specific feeders.2.9 ConclusionsBlack-lip pearl oysters have a wider geographic distribution and are presumably adapted toa greater range of temperatures than silver-lip pearl oysters. The latter species, however,apparently occupies a greater variety of habitats and has a more extensive verticaldistribution than its black-lip counterpart. The response of these two species to fluctuationsin environmental factors is poorly documented and studies comparing the responses of thetwo species and different developmental stages of each species are rare. Comparisons arealso hindered by the lack of information on latitudinal differences in physiological functionswithin each species. In Australia, adult silver-lip pearl oysters appear to be less tolerant oflower temperatures, but more tolerant of higher temperatures than black-lip pearl oysters.They are also capable of coping with a wider range of food concentrations and more turbidconditions than black-lip pearl oysters. This suggests that silver-lip pearl oysters have thepotential to be cultured under a greater variety of environmental conditions.The above review also suggests that little is known about the environmental conditionsunder which natural populations of black-lip and silver-lip pearl oysters grow in the SouthPacific region. Most of the information obtained about the environmental needs of pearloysters came from Australia or French Polynesia.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 6

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20083.0 ENVIRONMENTAL CONDITIONS AT EXISTING PEARLFARMS3.1 Black Pearl Farms3.1.1 AustraliaThere is an emerging black pearl industry in the Abrolhos Islands and in Shark Bay, WesternAustralia based primarily on the supply of juvenile pearl oysters from hatcheries (AustralianAquatic Portal 2007). In Queensland, suitable-sized wild black-lip pearl oysters collected bythe East Coast Pearl Fishery are translocated to aquaculture farms in Queensland and theTorres Strait for use in pearl production, but these comprise only a small amount of the liveshells used for pearl production (Department of Primary Industry and Fisheries,Queensland 2007).3.1.2 Cook IslandsBlack-lip oysters are currently farmed in Manihiki, Penrhyn (Tongareva) and Rakahangaatolls in the northern Cook Islands (Cook Islands Government, 2007). This species occursnaturally in the larger lagoons of Manihiki and Penrhyn, but was introduced intoRakahanga (Sims 1994). The physical features of Manihiki Atoll and its lagoon have beenwell documented, but relatively little is known about Penrhyn and Rakahanga atolls. Thecharacteristics of various atolls in the Cook Islands are summarised in Table 1 and discussedbelow.Manihiki is a small pear-shaped atoll with two large islets to the north-east and west andmany small islets in the south (Wells and Jenkins 1988). The lagoon is about 5 km indiameter and has a maximum depth of 72 m. The lagoon has a raised outer rim, whichpermits only minor water exchanges between the lagoon and the surrounding oceans,except during significant wave events. The reef flats between the small islets surroundingthe lagoon are generally less than 1 m deep (Sharma et al. 2001). The outer reef has a typicalmorphology with buttresses, surge channels and deep water close in (Bullivant 1974 in Wellsand Jenkins 1988). The greatest development of coral is found at the south-east perimeter ofthe lagoon, where the waves wash over the reef. The pinnacles within the lagoon arecomposed of living and dead coral. The islets within the lagoon are surrounded by smallfringing reefs. Ponia et al. (2000) estimated that the lagoon, land, coral and reef componentsof the atoll had surface areas of 48.0, 9.8, 5.0 and 1.1 km 2 , respectively. They also estimatedthat 25.3 km 2 of the lagoon lay at depths of 10-30 m and could be used for pearl farming, butnoted that only 7.7 km 2 of the lagoon was being used for this purpose in 1999.Penrhyn, the second most important area for pearl production has the largest lagoon in theCook Islands surrounded by reef and many islets and has three large passages at itsnorthern end. The lagoon, land, coral and reef components of this atoll have surface areas of208.0, 9.8, 15.0 and 1.1 km 2 , respectively (Ponia 2000). Rakahanga Atoll is small, with a totalsurface area of 4.0 km 2 . The lagoon is surrounded by coral reefs and has two main islets tothe north and south and seven smaller islets between these (Wells and Jenkins 1988).3.1.3 FijiThe largest black pearl oyster farm is located in Savusavu Bay (Islands BusinessInternational 2007). There are other smaller farms on Savusavu, Taveuni, Nakobo, MaliThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 7

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Island in Macuata and Galoa Island in Bua. The fisheries department has also received aproposal for a pearl farm to be loctaed in Vuna, Taveuni and is looking at expanding pearlfarming to Lomaiviti, Kadavu and Vanuabalavu in Lau.3.1.4 French PolynesiaThe pearl farming industry in French Polynesia is now based on collection of wild spat, butwas based originally on collection of wild stock from the lagoons of certain atolls. Black-lippearl oysters are currently being farmed in 30 atolls and islands of the Tuamotu andGambier archipelagos and some volcanic islands of the Société archipelago, FrenchPolynesia (Langy 2006). These farms are located either in lagoons associated withatolls/pseudo-atolls (e.g. Takapoto, Takroa, Manihi, Rangiroa, Fakareva and Mangareva) orin areas adjacent to high islands (e.g. Vairoa and Tahaa-Raiatea).The lagoons where black pearls are currently being produced differ markedly in totalsurface area, depth and degree of exchange with the ocean, with some having only a fewactive channels between the lagoon and the ocean, whereas others are largely open systemswith large active channels (e.g. Rangiroa and Mangareva) (Pouvreau and Prasil 2001).Considerable information is available about the environment of Takapoto and Rangiroalagoons, but relatively little is known about Fakareva, Mangareva and Takroa.The best-known atoll, Takapoto (14°30’ S, 145°20’ W), is located in the northwest of theTuamotu Archipelago. The lagoon is 18.7 km long and 4.4 km wide, has a mean depth of 23m, a maximum depth of 55 m and a total area of 81.7 km² (Buestel et al. 1995). It issurrounded by an almost closed reef rim approximately 600 m wide which isolates it fromthe ocean, except for a few shallow (< 50 cm deep) channels, where there are weak currents(Sournia and Ricard, 1976 in Niquil et al. 2001). The annual temperature range in the lagoonnormally varies from 26 °C in August to 30 °C in March, except during El Niño events whenit may rise to 31.5 °C (Pouvreau et al. 2000a). Salinity varies from 38 to 42 ‰. The water istransparent and the compensation depth exceeds the maximum depth of the lagoon (Charpyet al., 1992 in Niquil et al. 2001). The lagoon is oligotrophic, primary production is primarilydue to picoplankters and both the particulate inorganic and organic content of the water arelow (Pouvreau et al. 2000a). The movement of water within the lagoon is driven mainly bythe east–northeastern trade winds; there is no tidal current. The tidal amplitude is 40 cm(Wells and Jenkins 1988). The residence time of water in the lagoon is ca. 4 years.In the lagoon, there are numerous subsurface pinnacles with a good cover of molluscs andcorals (Pirazzoli and Montaggioni, 1984 in Niquil et al. 2001). The total volume of thesepinnacles is estimated to be between 1.3 and 1.5 km 3 (Buestel et al. 1995). Three distinctbottom types have been identified in the lagoon: sandy, hard and mixed substrata, whichconsists of small coral structures (< 1 m in diameter) on a sandy bottom (Zanini and Salvat2000). The 0-10 m depth stratum is characterised by sandy slopes and the tops of large coralformations. The percentage of sandy bottom, however, decreases with depth while thepercentage of mixed sub-stratum increases. Small, mainly dead, coral structures compriseabout 58% of the total surface area of the lagoon and provide an ideal habitat for theattachment of wild pearl oysters. These coral structures and pearl oysters are moreabundant at depths of 30-40 m, suggesting that a good substratum for colonisation isprobably a major factor determining the distribution of this mollusc.Rangiroa is the second largest atoll in the world and has a perimeter of 225 km and a totalsurface area of 1640 km 2 (Wells and Jenkins 1988). The atoll has around 240 motu (narrowislands on atoll reefs), mostly in the northwest. The rest of the rim is sandy and more or lesssubmerged. The lagoon varies in width from 4-30 km and has an average depth of 20 m anda maximum depth of 35 m. The lagoon contains coral pinnacles, sand banks, islets andThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 8

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008shallows, but has a silty bottom and a narrow silty beach in the north. There are tworelatively wide (450-550 m), deep (14 and 35 m) passes on the northern side, each of whichhas a patch reef at their entrance to the lagoon. There are also about 150 hoa (shallowchannels separating individual narrow islands on atoll reefs), some of which are open to thelagoon but blocked from the ocean, others are closed to the lagoon but open to the oceanwhile others are totally isolated. The water within the lagoon is similar to the ocean due tothe exchange that takes place through the passes and its large size. The reef flat has an algalridge approximately 10- 20 m wide. The submerged reef flat consists of a calcareousplatform studded with small colonies of coral. The abundance and diversity of corals issmall within the lagoon, but increases where the slope drops off. Patches of coral arerelatively abundant in the shallow areas in the southern part of the lagoon, where the wateris less silty, but abundance declines with depth. The pinnacles have a wide coral rockplatform on their sheltered sides, which is covered with sand, and scattered patches of coraland a sandy shelf with Acropora and encrusting algae on their exposed sides. The areaaround the base of the pinnacles is also sandy. A variety of scattered corals are found on theslope.Fakareva is a rectangular atoll. The lagoon is 56 km x 24 km, has islets at its eastern end andtwo passes. Takaroa atoll is 28 km x 8 km and has one pass into the lagoon.The volcanic islands Raiatea and Tahaa are surrounded by the same barrier reef. The lagoonis continuous except for two sections on the west coast. Mangareva is a high volcanic islandwith a 150 m wide fringing reef on the south coast, a 100-500 m wide, well-developed reef onthe east coast and reefs in shallow water on gentle slopes on the north and west sides,mainly around headlands.3.1.5 Solomon IslandsThe establishment of black pearl farms using wild spat and/or hatchery production hasbeen investigated (Friedman et al. 1996; Lane et al. 2003). A demonstration farm based onthe collection and rearing of wild spat has been established at Nusatupe, near Ghizo. Thissite is situated in the mid-lagoon and is subject to moderate near channel flows (Friedman etal. 1998). No information was found about water depth, temperature, salinity or foodsources at this location.3.1.6 VanuatuA black pearl culture feasibility study has been conducted at Peskarus in the MaskelynIslands, but trials were abandoned because there were insufficient stocks to support acommercial farm (SPC 2002). The potential for establishing black pearl farms has beeninvestigated (Lane et al. 2003).3.1.7 ConclusionsThe most productive black pearl farms are located in sheltered lagoons associated with atollsin French Polynesia and the Cook Islands, where this species reaches its greatest naturalabundance and wild spat for rearing are readily available. The feasibility of establishingfarms based on collection and rearing of wild stock/spat has also been investigated in othercoral reef habitats in Fiji, the Solomon Islands and Vanuatu. Several farms havesubsequently been established in Fiji. Commercial farm operations based on the supply ofjuvenile pearl oysters from hatcheries have also recently been established in WesternAustralia. Information is available about the environmental conditions in the vicinity ofsome of the farms in French Polynesia and the Cook Islands, but not those in Fiji andThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 9

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Australia. The paucity of information on environmental conditions prevailing in SolomonIslands relative to Cook Islands and French Polynesia precludes an assessment of whetherconditions for pearl farming would be comparable.3.2 Silver-White South Sea Pearl Farms3.2.1 AustraliaSilver-lip pearl oysters are currently being farmed in the northern part of Western Australia,Northern Territory, Queensland/Torres Strait Islands (Australian Aquatic Portal 2007).The West Australian silver pearl industry is based primarily on the collection of wild oystersthat are seeded with a nucleus under laboratory conditions on board ship, then placed inseabed panels which are turned regularly for two to three months before being transferredto pearl farms where they are grown on panels suspended from long lines for two years(Wells and Jernakoff 2006). Farms have been established along the Kimberley Coast,Canning Coast, Eighty Mile Beach, Pilbara Coast, Shark Bay Coast and Central West Coast(Department of Fisheries, Western Australia 1997). The geographic location of each of theseregions their coastal characteristics, typical marine habitats, and location pearl farms withinthem is summarised in Table 2. The pearling industry is based in Broome (Department ofFisheries, Western Australia 2002).In the Northern Territory, the production of silver pearls is based on oysters sourced fromhatcheries or on wild harvested oysters from Western Australia (Department of PrimaryIndustry, Fisheries and Mines, Northern Territory 2006). Active pearl farms are located intwo main areas: Coburg Peninsula/Croker Island and the English Company Islands/TruantIslands. There are several other lease sites owned by licensees, but these are not currentlybeing used for cultivation of pearls. The farm sites experience heavy rainfall during therainy season which may reduce the salinity of the water to < 30 ‰ for two or more weeks.Such salinities may have an adverse effect on the growth rates of spat (Taylor et al. 2004).The associated runoff from shore, silt and other effluent may also influence coastal pearlculture sites (Taylor et al. 2004).In Queensland, most of the silver-lip oyster shells used for pearl cultivation are obtainedfrom hatchery-derived spat (Department of Primary Industry and Fisheries, Queensland2007). Spat hatcheries have been established at Albany Island, Turtle Head, and FitzroyIslands (Gemmological Association of Australia, 2005). Suitable-sized wild silver-lip pearloysters collected by the East Coast Pearl Fishery are also translocated to aquaculture farmsin Queensland and the Torres Strait for use in pearl production, but account for only a smallamount of the live shells used for pearl production. There are pearl farms in several regionsof the Torres Strait (i.e. near Albany, Friday, Roko, Prince of Wales and Saibai Islands), atthree locations off the Great Barrier Reef (Arlington Reef, Double Island and Fitzroy Island)and in Hervey Bay, Southern Queensland.3.2.2 Papua New GuineaA commercial silver-lip pearl farm has been in operation on Samurai Island in Milne Baysince 1998 (SPC 2002). The pearl hatchery established at this location in 2002 has conductedtwo successful spawnings of black-lip and silver-lip oysters (National Fisheries Authority,Papua New Guinea 2005). A pearl farm has also been established on Ungan Island in NewIreland.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 10

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20083.2.3 Cook IslandsIn 1905, silver-lip oysters were introduced into the Cook Islands for culture, but this venturewas discontinued after the area was hit by a cyclone (SPC 2002).3.2.4 ConclusionsThe geographic distribution range of silver-lip pearl oysters is more restricted than that ofblack-lip pearl oysters, hence commercial silver-lip pearl farms have been established onlyon the north coast of Australia and in Papua New Guinea. The silver pearl industries inWestern Australia and Queensland are based primarily on the collection of wild oysters andhatchery-derived spat, respectively, whereas that in the Northern Territory is based onoysters sourced from hatcheries and wild oysters imported from Western Australia.It is difficult to assess the suitability of Solomon Islands waters for silver-lip pearl farming,because of the general paucity of information on the coastal environment in this region andon environmental conditions prevailing in the vicinity of the Australian and Papuan farms.It is, however, worth noting that the coastal waters off the larger Solomon Islands and thenorthern part of Australia are subject to heavy rainfall accompanied by freshwater runoffladen with silt.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 11

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20084.0 OVERVIEW OF CORAL REEF AND LAGOON HABITATS INKEY PACIFIC REGIONS4.1 AustraliaThe following overview of tropical Australian reef systems is based on Veron (2000). Subtropicalcoral reef systems have not been described, because they are not comparable tothose in the South Pacific region. In the tropical region of Australia, the best-developedcoral reefs are found along the northeast coast, there is less development of coral reefs alongthe northwest coast and only limited development along the north coast. On the north-eastcoast, the major reef structure is the Great Barrier Reef (GBR), which comprises about 3,000fringing reefs, submerged reefs, platform and barrier reefs spanning the continental shelf ofthe Pacific coast of Queensland and merging in the north with the reefs of the Torres Straitand Papua New Guinea (Figure 1a). There are also scattered and remote reefs in the CoralSea. The GBR extends from the tropics into the subtropics and has various regions whichdiffer in terms of climate (wind patterns and rainfall), tidal regimes, water quality,bathymetry, island types, substrata and even geological histories.Capricorn and Bunker reefs, in the southern section of the GBR, are characterised by welldefined,distinctly elevated platform reefs with entire, steeply sloping sides, moderatelydeep water between reefs and vegetated cays. The Pompey Complex and Swain Reefs, twoof the most offshore extensions of this section of the GBR, have a greater range of habitatsand more diverse corals than the Capricorn/Bunker Reefs. The Pompey Complex, consistsof interlocking reefs, channels, sandbars and lagoons and has ‘deltaic’ reefs composed ofsolid limestone on its outer edge which are separated by U-shaped channels characterisedby very strong, reversing, tidal currents. This complex experiences the greatest tidal rangeof the GBR and is a major barrier to tidal water movement. The Swain complex forms asouthward pointing wedge. The reefs on both sides of the wedge have exposed outer facesand protected inner margins, but are ecologically dissimilar.The central section of the GBR is characterised by lower reefs than the southern andnorthern sections, a lack of cays and well-defined outer barrier reefs. The coastal waters arerelatively shallow, turbid, protected from strong wave action and subject to seasonalterrigenous inputs of silt, freshwater and organic nutrients when rivers are in flood. Thefauna and flora of the inshore reefs and inter-reefal areas are conseqently very different fromthose occurring offshore.In the northern section of the GBR, ribbon reefs are found where the GBR shelf meets theQueensland Trough. These ribbon reefs occur all the way along the shelf-edge break toTorres Strait (720 km). Those on the eastern side are exposed to ocean swells and dropsteeply into the abyssal depths of the Queensland Trough. The band of water inside theribbon reefs is largely devoid of reefs. The mid-shelf, however, supports extensive areas ofreefs with roughly parallel east-west margins, that were cut in the past by rivers at low sealevels. The inner shelf contains a variety of reef types, high islands and coral cays, many ofwhich are vegetated. In the far north, where the continental shelf widens, there areextensive shelf edge reefs and numerous nearshore reefs. In the Torres Strait, the outerbarrier reefs are broken up into a series of delta-like formations similar to the reefs of thePompey Complex, and an almost impenetrable line of 'dissected' reefs. Inside this barrier,there is a variety of reef complexes, high islands and cays. The sea gradually becomes moreshallow and turbid towards the west, finally forming the Warrior Reefs, a series ofenormous mud flats fringed in the east by coral.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 12

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Fringing reefs occur along the coastline of the Northern Territory. The shallow, turbidwaters of the eastern Arafura Sea, however, are not conducive to growth of corals, hencemost of these reefs are shallow. The development of reef increases to the west and reachesmodest diversity in the vicinity of Essington Peninsula.On the coast of Western Australia, there are substantial areas of coastal fringing reefs atNingaloo Reef, in the Dampier and Monte Bello archipelagos and in the Kimberley region(Figure 1b). Ningaloo Reef is the largest fringing reef in Australia (230 km long). The reefsof the Dampier Archipelago, situated off the Pilbara coast are the best known reefs on thewest coast. The marine environment in this archipelago ranged from muddy inshore toclear offshore waters, all mixed by strong tidal currents. The reefs of the Kimberley coast arepoorly documented, probably because they are exposed to turbid waters and large tidalfluctuations. In the north-west, there are 'shelf-edge atolls', Scott Reef, Seringapatam Reefand Rowley Shoals, and an atoll-like structure consisting of a large sedimentaryaccumulation with reef patches, Ashmore Reef. The only true atoll in Australian waters isthe Cocos (Keeling) Atoll in the eastern Indian Ocean. There are also coral reefs and areas ofcoral growing on rocky reefs in the Houtman Abrolhos Islands, 400 km north of Perth. TheHoutman-Abrolhos Islands is a small archipelago of 122 low-lying islands situated near theedge of the continental shelf at latitudes of 28°15' to 29°00'S. Three of the islands are ofcontinental origin and have extensive sand dunes, whereas the others are composed oflimestone. The Abrolhos has the southernmost development of coral reefs in the IndianOcean and is one of the highest latitude coral reef systems in the world.4.2 Cook IslandsThe Cook Islands are located between 8 º and 23º S and 156º and 167ºW and are divided intotwo disjunct groups: the Southern and Northern Cook Islands (Figure 2). The Islands of theSouthern Group differ in form, structure and relief and include one high mountainous,volcanic island (Rarotonga), four low volcanic, raised islands surrounded by fossil reefs(Mangaia, Mauke, Mitiaro, and Atiu), a low lying elongated sand cay surrounded by coralreef (Takutea), two atolls (Manuae and Palmerston) and a near atoll with a volcanic core(Aitutaki). The volcanic islands are surrounded by fringing reefs. The Northern Groupconsists of five atolls (Suwarrow, Penrhyn, Manihiki, Rakahanga and Pukapuka) and oneoval flat sand cay on a coral foundation (Nassau). A brief description of these islands basedon the information in Wells and Jenkins (1988) is presented in Table 2.4.3 FijiFiji is one of the largest and most scattered groups of archipelagos in the South Pacificregion, consisting of about 844 high islands, cays and islets, located between 15-23º S and177-178º W (Vuki et al. 2000). The islands are divided into seven main groups: Rotuma,Vanua Levu and associated islands, the Lau Group, the Lomaiviti Group, the Yassawas, VitiLevu and associated islands and Kadavu and associated islands (Wells and Jenkins 1988)(Figure 3). The main archipelago accounts for 87% of the total land mass and includes thetwo largest islands, Viti Levu and Vanua Levu, and three other large islands, Taveuni,Kadavu and Gau. Most of the islands are volcanic and formed from molten rock that cooledand solidified below the surface of the earth.Coral reefs are well developed and found around all the island groups. Many of the reefsystems are complex, consisting of barrier, platform and patch reefs (Wells and Jenkins1988). Coral reefs vary in size from patch reefs less than 50 m long, to the 100 km long CoralCoast fringing reef system on Viti Levu and the 370 km long broken barrier reef chain of theThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 13

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Mamanucas/Yasawas/Great Sea Reef System (Vuki et al. 2000). Fringing reefs, the majortype of coral reef, are found around most of the high islands and are distributed from thesouthern end of the Mamanuca Group almost to Beqa, south of Viti Levu (Wells and Jenkins1988). Barrier reefs, the second major type of reef, are found at the edges of island shelvesand are separated from the mainland by a fairly narrow, shallow lagoon channel in whichthe water is generally turbid and of low salinity at the surface. Oceanic ribbon reefs, anothertype of barrier reef, occur in association with lagoons or areas of sea with normal salinity.The Great Sea Reef, Beqa Barrier Reef, Great Astrolabe Reef and some of the barrier reefs inthe Lau Group are oceanic ribbon reefs. Platform reefs are found only in shelf waters andare common inside the Great Sea Reef and within the Mabualau-Ovalau barrier reefs offeastern Viti Levu. There are only two shelf atolls: one in the Lau Group and the other to theeast of Vanua Levu.Coral reefs in Fiji have also been classified according to their position on the insular shelf(outer-, mid and inner shelf) and their exposure to the prevailing wind and seas (windwardand leeward) (Zann and Vuki, 2000). Windward reefs are found on the eastern, south andsouthwestern sides of exposed islands. The outer margins of the fore reef wave terrace havespurs-and-grooves and there is often a large amount of coral debris on the upper reef slopeand low coral cover. Barrier reefs have moderate coral cover and diverse assemblages ofhard and soft corals. Leeward inner-shelf reefs are well protected and their slopes aregenerally composed of coral rock with a low coral cover. The reef tops consist of coral rockand rubble and slope into areas dominated by macroalgae and seagrasses.4.4 French PolynesiaFrench Polynesia stretches across 2,500,000 km 2 of ocean from 134º 28’ W to 154º 40’ W and7º 50’ S to 27º 36” S. There is 3,430 km 2 of emergent land, 12,800 km 2 of reef formationtotalling more than 2,000 km in length (Gabrié, 1998 in Salvat et al. 2000) and about 7,000 km 2of lagoon (Wells and Jenkins 1988). French Polynesia consists of 118 islands distributedacross five archipelagos: Society, Tuamotu, Gambier, Marquesas and Austral Islands, each ofwhich is situated along a south-east to north-west axis (Salvat et al. 2000) (Figure 4). Eightyfourof the islands are atolls and most of the others are mountainous, volcanic islands.Tuamotu, the largest archipelago, consists of 76 islands, 75 of which are low atolls, cappingthe tops of cones which rise steeply from a huge ridge (Wells and Jenkins 1988). The otherisland, Makatea is a raised atoll. The atolls vary in size (from a few to more than 1,000 km 2 ),their lagoons, if present, cover a few to 92 % of the total area of the atoll and range in depthfrom 2 to 60 m (Dufour 2001). The characteristics of the apertures in the atoll rim, the areaand depth of the lagoon and position of gaps, natural channels and immersed coral ringwith respect to the predominant currents affect the rate of renewal of water. The degree ofconnection between the lagoons and the surrounding ocean, as expressed by the ratio of theperimeter of passes + gaps + immersed crown to the perimeter of the atoll varies from 0.01to 0.59. Forty-five atolls lack natural passages to the surrounding ocean, whereas 10 haveseveral passages.The Society Archipelago comprises nine high, volcanic islands and five atolls. Tahiti, thelargest high volcanic island, has discontinuous fringing reefs with a chain of interruptedbarrier reefs partially enclosing a lagoon. Moorea, the second largest high volcanic island,has a barrier reef with twelve passes enclosing a shallow (0.5-3.0 m) lagoon that is 500-1500m wide. Deeper channels in the lagoon are orientated parallel to the coast and open into thepasses. The small twin volcanic islands, Huahine Nui and Huahine Iti are surrounded by anarrow barrier reef which has five passes and raised terrace at its northern end. There isThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 14

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008location of corals reefs in PNG is limited (Huber 1994). Over one half of the coastline andsurrounding islands appear to be fronted by coral reefs (Quinn and Kojis 2000). All reeftypes are represented, but fringing and barrier reefs are the most common. The followingdescription of reef and lagoon habitats is based on the information presented in Wells andJenkins (1988).The Western Province of the mainland is characterised by numerous patch reefs withextensive seagrass beds. There are two major embayments, Port Moresby Harbour andBootless Inlet. The headlands between these bays are bordered by narrow (less than 100 mwide) fringing reefs. There are also large barrier reefs in the Port Moresby area. The coralassemblages on the steep leeward back-slopes of the barrier reefs and on the near verticalflanks of island fringing reefs facing deep channels and passes with strong currents arediverse and profuse. Bootless Bay has a diverse range of habitats including mainland andisland fringing reefs, mangroves, seagrass beds, soft bottom assemblages, patch reefs and awell developed barrier reef (Maniwavie 2000). The Papuan Barrier Reef is situated about 5km off the south coast and stretches for 563 km from just west of Port Moresby to theLouisiade Barrier at about 151° E. This reef has four major and numerous small channels.Near Port Moresby, it encloses a lagoon which has an opening in the north-west and thereare fringing reefs and barrier reefs in the south-east, where the lagoon narrows.On the northern side of the mainland, fringing reefs with large coral cover and speciesdiversity occur between Condor Point in Madang Province and East Cape. There is also afairly continuous fringing and barrier reef between Condor Point and Cape Ward Hunt insouthern Morobe. The reef crest is this area lacks rubble and large boulders. Thedevelopment of offshore shoal reefs is limited by the steeply-shelving seabed. The easterncoast south of Lae is fringed by reefs and there are numerous offshore islands within 50 kmof the coast that have reefs. The islands in the Fly and Longuerue Groups are surroundedby fringing reefs which have a similar structure to those on the mainland. The growth ofreefs within Huon Gulf is limited by sediment inputs from the Markham River. The coastbetween Cape Arkona and Finschhafen is lined by fringing reefs, except around rivermouths. There is a small atoll, Tami, with three elevated limestone islets situated in theocean approximately 10 km off Finschhafen. The lagoon is about 18 m deep, has a sandybottom, but there is little coral growth below a depth of 10 m. The fringing reefs betweenFinschhafen and Madang are generally less than 100 m wide and lack a well-defined lagoon,except at some sites. There is a double barrier reef around and 10 km to the north ofMadang inside which there are hundreds of small reef islands and depths down to 50 m.Hansa Bay, to the north of Madang, the site of the last major reefs south of the two largestrivers in PNG (Ramu and Sepik), has a discontinuous fringing reef. During the rainy season,the water within Hansa Bay is often reduced in salinity, muddy and rich in organic materialdischarged from the Ramu and Sepik rivers. In the dry season, the current comes from thesouth-east and brings clear water, short swell and strong waves to the reef. Laing Island,the only emergent portion of the north-south aligned reef within the bay, has a small (400 x200 m) lagoon along its western shore and is surrounded by a well-developed fringing reef.Milne Bay Province covers an area of approximately 265,000 km 2 and encompasses theextreme southeastern tip of mainland Papua New Guinea and the extensive offshore areaimmediately to the east. The province includes three major mainland districts: the 130-kmlong stretch of the south coast between Samarai and Orangerie Bay, Milne Bay proper, andGoodenough Bay, lying immediately northward, and the adjacent southeastern part ofCollingwood Bay. The province also encompasses the Papuan Island Group to the eastwhich comprises the Trobriand Islands and associated Lusancay Reefs, d’EntrecasteauxIslands, Muyua and the reefs and islands in the Louisiade Archipelago (Wells and JenkinsThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 16

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20081988). The entire area is characterised by an extensive and complex system of submergedand emergent coral reefs. This area includes the Trobriand-Normandy, East Cape-NuakataBarrier and Sideia-Basilaki Barrier Reefs and Gallows reef which separates the first twobarrier reefs. Over the past decade, two rapid marine biodiversity assessments have beenundertaken in Milne Bay province(Werner and Allen 1998; Allen et al. 2003). The firstassessment focused on Milne Bay proper, East Cape area, D’Entrecasteaux Islands, EngineerGroup, Conflict Group, Nuakata region, and the southern tier of islands including Samarai,Sideia, and Basilaki. The second assessment focused on Goodenough and Collingwood bayson the mainland, the Amphlett Islands, D’Entrecasteaux Islands, Rossel Island, Sudest Islandand Calvados Chain in the Louisiade Archipelago. The sites surveyed included outer reefsand passages, isolated platform reefs, fringing reefs and lagoons and patch reefs.The North Louisdiade Barrier Reefs situated to the east of the Papuan Island Groupcomprise the Shortland Reefs, Engineer Reef, Esmerald Reef, Conflict Group and TorlesseIsland, the Deboyne Group and Redlick Atoll. There are fringing reefs around many of theseislands and numerous patch reefs. This area also includes several shelf atolls, barrier rimatolls, oceanic atolls and raised atolls and two major insular barrier reefs. The CalvadosBarrier Reef is separated from the rest of the New Guinea Barrier system by narrowchannels. The reef, which is 180 km long, 48 km in diameter and 500 km in circumference, isone of the largest atoll structures in the world. It is separated from the Sudest and CalvadosChain by a 8-32 km wide lagoon, which is 50-60 m deep away from patches reef and highislands. The barrier is more like a “ribbon reef” on its south-eastern and southern side andis submerged for 40 km in the south-west. Most of the passes in the barrier are relativelyshallow (10-20 m depth), however, there are some passes over 50 m deep. The second majorinsular barrier reef, the Rossel Barrier Reef, is located 11-16 km to the east of Sudest. Thereare secondary barrier reefs on the north-west side of the Calvados Barrier and around someof the small isolated islands to the south-east of East Cape and fringing-barrier transitionreefs in the Deboyne Islands, Misima and Muyua.There are extensive reefs around Central, Bougainville, New Ireland and Manus Provinces,but only discontinuous reefs around New Britain and East and West Sepik.4.6 Solomon IslandsThe Solomon Islands archipelago is orientated south-east to north-west and located betweenlatitudes 5-12° S and longitudes 152-170°E (Ramohia 2006). The archipelago consists of sixmajor islands, 30 medium size islands and 886 smaller islands (Hughes 2006). The six mainislands (Choiseul, Isabel, Malaita, Makira, Guadalcanal and New Georgia) are arranged in adouble chain with the two strands separated by the New Georgia Sound and IndispensableStrait (Sulu et al. 2000)(Figure 6).The first broad-scale survey of the geomorphology, composition and ecology of coral reefhabitats in the Solomon Islands was undertaken in 1965 by The Royal Society of London(Stoddart 1969a-c, Morton 1974). During these studies, 36 fringing reefs distributed acrossthe Florida and Russell Islands, Guadalcanal and New Georgia, in the southern SolomonIslands were examined. Morton (1974) noted that these reefs were generally associated withuplifted shores and that they were either attached to volcanic coastlines or grew seawardfrom elevated coral limestone benches. He distinguished four types of fringing reef:• Broad fringing reefs, up to 500-600 m across, located in sheltered embayments;The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 17

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008• Sheltered reefs situated within and near the mouths of land-enclosed estuaries whererun-off of freshwater and particulate matter from the land does not inhibit coralgrowth;• Narrow fringing reefs less than 50 m across located on protected leeward coastswhich are exposed to relatively light wave action; and• Reefs on south-facing coasts, which are regularly exposed to wave action and surgegenerated by the prevailing onshore winds.Morton (1974) considered that the sheltered reefs within land-enclosed waters were the mostcomparable in terms of exposure regime and coral composition to the reefs associated withatoll systems. The sheltered reefs studied were located at Honiara and Paruru Bay inGuadalcanal, Banika Island in the Russell Group and Marovo Lagoon, New Georgia.The following description of the lagoon complexes in New Georgia is based on thedescription given in Wells and Jenkins (1988), which in turn was derived from Stoddart(1969c). Marovo, Gerasi and Togavai lagoons on the north-east coast and Roviana Lagoonon the south-west coast are enclosed by raised barrier reefs. The north-eastern lagoons forma shelf with a total surface area of 700 km 2 . Marovo Lagoon, the largest system, is 35-55 kmlong and 500 m to 8 km wide. The main body of this lagoon is 25 m deep, but the bottomdrops to 50-60 m in some of the inshore passages between the eastern barrier islands. Njaepassage, for example, is about 40 m deep and the area of the lagoon to the west of this is 50-60 m deep, but the depth drops to 80 m at the entrance to the ocean. The maximum depth inthe eastern part of the lagoon is 25-30 m, but the water is shallower on the east coast. Thelagoon contains numerous sand cays, mangrove islets, raised reef islands and some smallvolcanic islands. The lagoon has three major habitats: sand cay complexes consisting ofsand islets on patch reefs with a thin fringe of mangroves; estuarine complexes with shallowwater, muddy bottoms, variable salinity and freshwater inputs rich in organic detritus; andbarrier islands with markedly different environments on their ocean-facing and lagoon sidereefs (Baines 1985 in Wells and Jenkins 1988). Coral reefs are found throughout the lagoon,but their growth is poor at the surface.The partly submerged barrier reef that extends from the south to the north coast fringingreef on Guadalcanal encloses a 1000 km 2 area known as Marau Sound. The depth of waterwithin the channel of the sound varies from 20-60 m and increases from west to east andtowards the barrier entrances. The reef flats in the sound cover an area of 25 km 2 and wereraised 0.6 m in 1961 by an earthquake. The flats on the barrier reef are up to 2 km wide, buthave little living coral, probably because they dry out at low tide.A recent report on the status of coral reefs in the Solomon Islands (Sulu et al. 2000), indicatesthat some of the largest areas of coral reef are found in association with large lagooncomplexes and lists the following as significant areas:• around the Shortland Islands near Bougainville;• inside the barrier reefs along the northeastern shore of Choiseul;• on either side of the Manning Strait between Choiseul and Santa IsabeI and along thesouthwestern shore of Santa Isabel;• in the Ghizo–Vonavona lagoonal area on New Georgia’s southern shore;• encircling Vangunu in southeastern New Georgia and along the northeastern coastarea past Ramata almost to Lever Harbour (Marovo Lagoon);• in the north at Lau Lagoon and west at Langalanga Lagoon in Malaita;The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 18

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008• and in eastern Guadalcanal (Marau Sound).Sulu et al. (2000) also described the other types of reef habitat found in the Solomon Islands.There are relatively small, submerged barrier reefs along the northeast coast of Choiseul,near Ghizo and near Munda in New Georgia, off Star Harbour in eastern Makira, northeastof the Russell Islands, across the entrance of Kangava Bay on the south coast of Rennell andaround Utupua Island in the easterly Santa Cruz Islands. Barrier reefs in excess of 20 km inlength are found westwards of the Reef Islands in the Santa Cruz Islands and at The GreatReef which is situated slightly further north. Atolls are relatively scarce. The largest,Ontong Java, is 70 km long and 11-36 km wide and has a wide reef flat enclosing a lagoonwith a surface area of about 1400 km 2 . In the Stewart Islands, about 200 km northeast ofMalaita, there is a small triangular atoll, Sikaiana, about 10 km wide surrounded by anarrow coral reef which drops steeply to great depths. There are three raised atolls (Oema,Rennell and Bellona) in Bougainville Strait. There are also several mid-ocean reefs coveredwith coral, including Roncador and Bradley reefs to the south of Ontong Java, theIndispensable Reefs south of Rennell, and several small shoals north of the Santa CruzIslands.In 2004, a comprehensive scientific survey of the marine environment in the SolomonIslands was undertaken by The Nature Conservancy in collaboration with community,government, and non-government partners (Green et al. 2006). Benthic assemblagesoccurring at depths of 8-10 m were surveyed at 66 sheltered and exposed sites distributedacross six regions (Hughes 2006). This study showed that coral cover declined from 47% inthe west to 29% in the east and that the cover of coral was much greater in the Western,Isabel and Choiseul Provinces than in the Guadalcanal, Makira and Malaita and greater inexposed than sheltered locations in all of the regions, except Guadalcanal. The macroalgalcover and non-living cover were both poorest in the Western Province. The greatestmacroalgal and non-living covers were found in the Malaita and Makira regions,respectively. Both the macroalgal and non-living cover were similar at the other locations.4.7 VanuatuVanuatu is an archipelago consisting of over 80 islands stretching across 1,300 kilometres inthe Western Pacific Ocean (Figure 7). The islands are composed either of igneous formationsor from limestone derived from uplifted fringing coral reefs (Preston, 1996 cited by Navitiand Aston 2000). There are relatively few extensive shallow water reefs surrounding theislands in the Vanuatu archipelago. Inner reef areas are limited to narrow fringing reefs andreef platforms surrounding islands and a few lagoons and barrier reefs, totalling an area ofapproximately 408 km 2 (Bell and Amos, 1993 cited by Naviti and Aston 2000). In 1988, acomprehensive survey of the condition and character of coral reefs and associatedecosystems was undertaken by scientists from the Australian Institute of Marine Science(AIMS) and the Great Barrier Reef Marine Park Authority at 35 locations throughoutVanuatu (Done & Navin, 1990). Exposed coral reef slopes and crests were found to bedominated by coralline algae and robust plating and branching corals (Acropora andPocilloporidae), whereas areas 3-5 metres below the level of the reef flat were dominated bymassive and branching corals. Sheltered parts of the outer reef were characterised byvarious species of Acropora and Montipora. Massive Porites were commonin open embayments while sheltered embayments were strongly dominated by softcorals. Subsequent surveys have been conducted on an ad hoc basis, as part of the feasibilityassessment of foreshore development projects and as a result of the establishment of aMarine Protected Area in Hogg Harbour (Naviti and Aston 2000).The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 19

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20084.8 ConclusionsThe coral reef habitats in the Solomon Islands are similar to those found in association withother high Melanesian islands (i.e. Fiji, Papua New Guinea and Vanuatu) and off mainlandAustralia, but different from those found in the Cook Islands and French Polynesia. InMelanesia, the coral reefs generally either fringe the high islands or occur in shallow,sublittoral areas (Wells and Jenkins 1988). These reefs have a relatively ‘open’ structure andconsiderable exchange of water occurs through the numerous passages linking patch,fringing and barrier reefs with deeper water. On the north-east Australian coast, the majorreef structure is the Great Barrier Reef, which comprises about 3,000 fringing reefs,submerged reefs, platform and barrier reefs. There are also substantial fringing reefs alongthe Northern Territory and West Australian coasts and 'shelf-edge atolls' and an atoll-likestructure in the north-west. There are also coral reefs and areas of coral growing on rockyreefs in the Houtman Abrolhos Islands, 400 km north of Perth. In the Cook Islands andFrench Polynesia, atolls are the predominant coral reef habitat and it is in their ‘enclosed’ or‘semi-enclosed’ lagoons that the majority of black pearl farms are located. This type of coralreef structure is scarce in the Central West Pacific region and there is only one true atoll inAustralian waters, the Cocos (Keeling) Atoll in the eastern Indian Ocean.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 20

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20085.0 THE EFFECT OF HABITAT ON CULTURE OF PEARL OYSTERS5.1 IntroductionPearl oyster farming may involve the following stages: production of larvae and spat in ahatchery, collection of wild spat on artificial collectors, grow-out of juveniles in intermediategrow-out systems, collection of juveniles or adults from wild populations, seeding andgrow-out of juveniles and adults on dropper ropes or “chaplets” connected to submergedlonglines (Lane et al. 2003). Production of larvae and spat in a hatchery and seeding ofoysters are not discussed here, because they are laboratory-based operations that take placeunder controlled conditions. Existing information on the suitability of various coral reef andlagoon habitats for collection of wild spat, grow-out of juveniles and adults are summarisedin the following sections.5.2 Collection of Wild Spat5.2.1 GeneralCollection of wild spat is most effective in areas in which there are sufficient numbers ofadults in the surrounding waters to produce large numbers of larvae and in areas wherecompetent larvae aggregate prior to settlement (Lane et al. 2003). The effectiveness of spatcollection also depends on the type of spat collector, location, season and depth at which thecollector is deployed (Gervis and Sims 1992). Spat collection is likely to be less effective inopen lagoons or nearshore areas with high rates of water exchange, because larvae may beflushed away before they are competent to settle on collectors (Haws and Ellis 2000). Inrelatively enclosed lagoon systems, densities of spat are likely to be greater in areas awayfrom passages and on the down-current side of patch reefs, where currents tend to formeddies. In enclosed lagoons, where water movements are driven by wind in a reversecirculation pattern, densities should also be higher on the down-current side (Sims 1992). Inareas in which spat collection is ineffective, it may be possible to ship in spat fromelsewhere. In 1997, a pearl farmer on Raiatea in the Society Archipelago, French Polynesiareceived an air shipment consisting of a 4-ton supply of juvenile oysters from Takaroa,Tuamotu Archipelago, (Tisdell and Poirine 2000). At present, culture of silver-lip oysters isnot based on wild caught spat.5.2.2 Black-lip Pearl OystersIn French Polynesia and the Cook Islands, black pearl production is based on spat that settleon artificial collectors deployed in the lagoons of “enclosed” or “semi-enclosed” atolls, manyof which have limited exchange of water with the open ocean. The period of deploymentvaries from 6 months in some parts of French Polynesia to up to two years in Manihiki Atollin the Cook Islands, by which time animals have reached 65-90 mm dorsoventralmeasurement (Friedman and Southgate 1999). In these areas, spat are very abundant andalthough some may be lost to predators, there are usually enough survivors to stock pearlfarms (Haws and Ellis 2000).The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 21

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Friedman et al. (1998) examined the availability of wild spat in seven habitats across sevenregions (Gela, Seghe, Noro, Gizo, South Malaita, Ysabel and Shortlands) of the SolomonIslands:• inner lagoons with low water movement and periodic run-off from land masses;• mid lagoon in shallow areas or close to reefs, where there was either low, some ormoderate water movement;• mid lagoon near channel flows, where there was moderate water movement;• the outer edge of lagoons, near channel flows with moderate water flow; and• outside barrier/fringing reef, near channel flows with moderate waterflows).They showed that reasonable quantities of spat could be collected from some habitats within“open” reef systems, particularly from sites with clear water and moderate currents thatwere at least 35 m from the nearest reef. The inner lagoon habitats at Seghe, Noro, Gizo andSouth Malaita yielded the smallest numbers of spat, which is in contrast to the situation inPolynesia. Friedman et al. (1998) noted that these lagoonal sites differed from the atollsystems in Polynesia in that they were smaller, shallower, had soft rather than firmsubstrata, and were more turbid due to runoff of sediment and nutrients from their adjacentland masses. They suggested that collectors were less effective at these sites, because theybecame clogged with particulate matter and overgrown with epiphytic algae, particularlyduring the rainy season. Sites that were located near extensive reef systems with clearwater, had moderate current flow, depths > 15 m and were at least 35 m from the nearestreef generally yielded the most spat, with the greatest numbers being collected at midlagoon sites at Nusa Tupe, Gizo and an outside barrier/fringing reef site at Noro. Theirstudy also showed that the collectors attracted predatory gastropods and crabs and that alarge proportion (42%) of the oyster spat collected was dead. Friedman et al. (1998)concluded that there is potential for black-lip pearl cultivation in these “open” reef systemsbased on collection of wild spat, provided that the high rate of mortality can be reduced.Friedman and Bell (1999) subsequently examined seasonal differences in the availability ofspat in offshore and inshore zones of “open” reef systems in two contrasting geographicregions bordered by major landmasses, an embayed lagoonal system at Gizo and anenclosed sound at Noro. They predicted that more spat would be collected from offshorethan inshore zones and that spatfall in the offshore zone would be similar in “wet” and“dry” seasons, but greater during the “dry” than in the “wet” season in the inshore zone.In both seasons, significantly more spat were collected in the offshore zone than in theinshore zone at both locations (Friedman and Bell 1999). The offshore-inshore pattern ofabundance could be due to environmental conditions suitable for the settlement of spatbeing less suitable inshore than offshore because of the greater influence of runoff from theland masses, greater flows offshore may result in more water and larvae coming into contactwith the collectors, differential predation after settlement or differential supply of larvaebetween zones. Although the influence of these factors was not determined, Friedman andBell (1999) concluded that differential predation after settlement was unlikely to be a majorfactor because the variation in abundance of living spat was similar to that for total numberof spat. In the offshore zone, similar numbers of spat were collected at Gizo during bothseasons, but at Noro significantly more spat were collected during the “dry” than the “wet”season. The seasonal decline in abundance of spat in the offshore zone at Noro may havebeen due to greater than average runoff resulting from cyclone activity being channelledthrough the sound further offshore than usual. At Gizo, the runoff is more likely to haveThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 22

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008been retained within the inshore lagoon. This suggests that heavy rains during cyclonesmay have a significant effect on the availability of spat.5.2.3 Silver-lip Pearl OystersNo information was found about the collection of wild silver-lip pearl oyster spat, probablybecause the industry is based on wild adult individuals of a particular size range orhatchery-derived spat.5.3 Intermediate Grow-out of Juveniles5.3.1 GeneralJuvenile pearl oysters originating from hatcheries or spat collectors are often placed inintermediate grow-out systems until they become a large enough (e.g. 50-60 mm shelllength) for transfer to the main grow-out system. These systems are usually deployed insheltered environments which provide protection from rough seas and adverse weatherconditions. Bays, inlets, channels and lagoons with gentle tides and an area of land nearbyfor establishing a land base are considered suitable grow-out locations (Passfield 1989).5.3.2 Black-lip Pearl OystersIn the Solomon Islands, the use of intermediate grow-out systems is essential to reducemortality caused by invertebrate and fish predators. The growth and survival of juvenileshas been assessed in lantern nets suspended from longlines at depths of 3-4 m at nineshallow water sites throughout the Solomon Islands and at depths of 9-12 m and 35-45 mwithin an area of the Gizo Lagoon, which had numerous passages and submerged reefslinking it to the ocean and an average depth of 40 m (Friedman and Southgate 1999).Juveniles with initial DVM of 8.3-51.5 mm increased in size by 20.4-24.8 mm in three monthsand 30.7 to 36.5 mm in five months. These growth rates are comparable with those reportedin Takapoto atoll, French Polynesia, where juveniles of 40-50 mm DVM grew 30 mm in sixmonths (Coeroli et al. 1984), and are much better than in the Cook Islands, where hatcheryproduced juveniles with a DVM of 10 mm grew 6.4 mm in three months (Braley 1997). Thesurvival of juveniles in lantern nets deployed in shallow water was poor due to predation byfish and invertebrates. Mortality due to reef-associated fish was reduced by moving theculture systems into deeper water. Friedman and Southgate (1999) pointed out that whilstthe high nutrient load in the Solomon Island lagoons may have a positive effect on rate ofgrowth, it also has an economic cost because it promotes algal fouling which needs to beremoved regularly from the culture units.The growth rates, survival and condition index of small black-lip pearl oysters over a 14month period has also been compared in two contrasting environments within the GreatBarrier Reef lagoon, a mainland bay (Bowling Green) and an area located adjacent to afringing reef on the leeward side of Orpheus Island approximately 20 km offshore (Yukihiraet al. 2006). The bay is subject to seasonal input of sediment from rivers and periodic resuspensionof fine material during strong winds, so the water is typically turbid andcontains large amounts of SPM and POM. The water at the offshore location, in contrast, isrelatively clear and characterised by small concentrations of SPM and POM, similar to thosefound within an oligotrophic French Polynesian lagoon (Takapoto). The temperature rangewithin the bay (19.8 - 30.7 °C) is also slightly greater than that at the offshore location (21.5 -29.6 °C). Small black-lip pearl oysters grew faster, suffered significantly less mortality andThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 23

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008maintained a better condition at Orpheus Island than in Bowling Green Bay. This impliesthat the environmental conditions were more suitable for the growth of juveniles offshorethan in the mainland bay.5.3.3 Silver-lip Pearl OystersYukihira et al. (2006) also compared the growth, survival and condition of small silver-lippearl oysters cultured in two dissimilar environments in the Great Barrier Reef lagoon (seeSection 5.3.2 for a brief description of these sites). These animals, in contrast to black-lipoysters, grew at similar rates at both sites and exhibited distinct seasonal differences with noor minimal growth occurring in winter. At the end of the study, there were no significantdifferences between sites in the condition of the oysters. The lack of difference in growthrates and condition between sites is surprising given the substantial differences in their SPMand POM concentrations. It suggests that there may be also be a difference in quality as wellas quantity of POM between sites and that the food at the offshore location may have beenof better quality than that in the bay. Small oysters failed to survive at both sites, with mostof the mortality occurring in winter. The rate of mortality was slightly smaller in themainland bay (50%) than offshore (60%). The seasonal difference in survival suggests thatpearl farmers should not transfer spat from hatcheries or warmer environments to siteswhere the temperature drops below 25°C in winter (Yukihira et al. 2006).No other information was found about the influence of habitat on grow-out of juvenilesilver-lip pearl oysters, presumably because most of the industry is based on wild caughtoysters of a target size (120-160 mm).5.4 Ongrowing of Adult Pearl Oysters5.4.1 Black-lip Pearl OystersIn the Cook Islands, the growth of black-lip pearl oysters has been investigated at differentsites within Manihiki Lagoon (Tauhunu, Paerangi and the Fishing Reserve), among lagoons(Rakahanga, Manihiki and Suwarrow), in different natural habitats (rock vs sandy bottom attwo depths 15-17 m and 33-35 m) and under different culture conditions (platform andlongline) (Sims 1994). The results, however, are difficult to interpret because of theexperimental design. At Paerangi, growth on long-lines was faster than that on the platformwith estimates for time to reach 120 mm DVM (T 120) being 1.2 and 1.4 years, respectively.The linear growth of oysters deployed on longlines and platforms was almost three timesgreater than those placed on rock bottom. At Tauhunu, linear growth rates of oysters in the100-119 mm size class were twice as great on the platform as on rock, but no such differencewas evident in the 120-139 mm size class. Linear growth of oysters in the 80-99 mm sizerange was faster on platforms at Paerangi than at Tauhunu. In Manihiki Lagoon, theestimated time to reach T 120ranged from 1.2 years on long-lines to over 6 years for oystersplaced on natural substrata in deep water. Linear increments at depths of 15-17 m weretwice as great as those at depths of 33-35 m. Growth rates also differed between substrata indeep water, with maximal length being significantly higher on rock than on sand and lineargrowth being slightly faster on rock, particularly in larger size classes. In mid-depths, therewas no difference in growth between sand and rock trials. Growth on platforms in Manihikiwas slightly faster than in Rakahanga. Growth of oysters on longlines was more than twiceas fast in Manihiki (T 120=1.2) as in Suwarrow (T 120= 2.9). Differences in growth between sitesin Manihiki were attributed to either differences in densities of oysters on platforms or site-The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 24

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008specific factors such as currents and circulation patterns, or food availability, all of which areimportant to commercial farming.In French Polynesia, the growth of cultured black-lip pearl oysters has been compared inthree completely or almost closed atoll lagoons (Takapoto, Takaroa and Manihi), threelargely open atoll lagoons (Rangiroa, Fakareva and Mangareva), in lagoons off two highislands (Raiatea-Tahaa and Vairao on Tahiti) and in the open ocean near Takapoto atoll,French Polynesia (Pouvreau and Prasil 2001). The growth rate of oysters more than twoyears old was significantly greater in island lagoons and ocean habitat than in atoll lagoons.The time oysters took to reach a size suitable for implantation of a nucleus (i.e. 100 mm)ranged from 21 to 26 months and was greater in atolls (25 months) than in islands or openocean (22 months). The mean annual shell growth increment after this year, which is anindirect but reliable index of nacreous deposition rate on the pearl nucleus, was also greaterin the islands and open ocean (26.1 mm y -1 ) than the atolls (21.3 mm y -1 ). Potential pearlfarming performances were high in the island lagoons and ocean, moderate in Mangareva,Takaroa, Rangiroa and Manihi lagoons and low in Takapoto and Fakareva lagoons.Pouvreau and Prasil (2001) attributed the differences in growth rate to the negative effects ofwater temperatures close to or in excess of 30 ° C at Takapopto and Fangareva, differences inthe degree of water renewal and food supply around the oysters. They also suggested thatthe POM content and hence potential availability of food in atoll and island lagoons may beresponsible for some of the differences in growth between these habitats. The observationthat pearl oysters cultured in the open ocean, an environment known to have lower POMconcentrations than lagoons, had the maximal growth rate, however, appears to be at oddswith this hypothesis.Yukihira et al. (2006) also compared the growth, survival and condition of medium and largesize black-lip pearl oysters at the two dissimilar environments within the Great Barrier Reeflagoon (see section 5.3.2 for a brief description of these sites). The growth rate and survivalof both groups and condition of medium-sized animals were significantly smaller in the baythan offshore. All of the medium or large-sized oysters cultured at the offshore locationsurvived. These results indicate the environmental conditions at Orpheus Island were moresuitable than those in the mainland bay for this species.5.4.2 Silver-lip Pearl OystersYukihira et al. (2006) compared the growth, survival and condition of medium and large sizesilver-lip pearl oysters at the two dissimilar sites in the Great Barrier Reef lagoon (seeSection 5.3.2 for a brief description of the sites). The growth rate of both groups of oysterswas similar in the two environments. By the end of the study, they had also attained asimilar condition in both environments. Seasonal differences in growth rate were confinedto medium-sized animals and followed a similar pattern to that described for juveniles (seeSection 5.3.3). All of the oysters survived.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 25

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20086.0 CONCLUSIONS6.1 Black-lip pearl oystersMost of the existing black-pearl farms in the Cook Islands and French Polynesia are locatedin fairly deep, ‘closed’ or ‘semi-enclosed’ atoll lagoons, some of which contain natural blacklippearl oyster populations. The limited exchange of water between these systems and theopen ocean results in the retention of pelagic larvae produced by the broodstock andfacilitates the collection of wild spat. These lagoons are typically oligotrophic and have lowturbidity levels (Pouvreau et al. 1999). Black-lip pearl oysters appear to compensate for thelow food concentrations by having a high clearance rate, retaining a wide size range of foodparticles and, in some circumstances, feeding selectively on certain components of thephytoplankton (Pouvreau et al. 1999b; Loret et al. 2000a).This species is also found throughout Melanesia and off the north Australian coast, wheremore ‘open’ coral reef habitats predominate. In these systems, there is much greaterexchange of water with surrounding habitats than in atoll lagoons. Spat are consequentlyless likely to be retained within ‘open’ systems. Despite this, it is clearly feasible to collectwild spat from ‘open’ reef habitats in the Solomon Islands, particularly from sites with clearwater, moderate currents that are at least 35 m away from the nearest reef (Friedman et al.1998). Surprisingly, collectors deployed in lagoons within barrier reefs, the reef habitatmost comparable to atoll lagoons in terms of enclosure, yielded the fewest spat. The lowyield appeared to be due to collectors becoming clogged with sediment or overgrown byalgae during the rainy season, when there is considerable runoff from the adjacent landmass. The lack of a suitable hard substratum within the barrier reef lagoon may also havecontributed to the low spat yields.Friedman and Southgate (1999) have shown that the growth rate of juvenile black-lip pearloysters cultured in the ‘open’ reef systems of the Solomon Islands compares favourablywith that observed in some of the atolls in French Polynesia and the Cook Islands. Theysuggest that the high nutrient load in the Solomon Island lagoons, resulting from runoffduring the rainy season, may have contributed to the good growth rates.In north-east Australia, black-lip oysters grown in a sheltered mainland bay took 14 monthslonger to reach a size appropriate for the first pearl nucleus implantation than those grownoffshore of a fringing reef site located 20km offshore (Yukihira et al. 2006). The poorerperformance of oysters in the mainland bay was attributed to the adverse effects of highconcentrations of SPM and POM, derived from the seasonal input of sediment from riversand periodic re-suspension of fine material deposited on the bottom by waves during strongwinds, on the species energetic processes. The poor performance of black-lip pearl oystersunder turbid conditions suggests that commercial culture may be less viable in this type ofenvironment.6.2 Silver-lip pearl oystersSilver-lip pearl oysters are often cultured in near-shore areas subject to large fluctuations insalinity and high inputs of terrigenous sediment and nutrients during seasonal rainfallevents. Reductions in salinity to levels as low as 25 ‰ during the rainy season has anadverse effect on growth rate and results in detachment of juveniles, but has no effect onsurvival of spat (Taylor et al. 1997 and 2004). This suggests that hatchery-reared spat shouldnot be transferred to these environments during the rainy season. The poorer survival andThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 26

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008minimal growth of juveniles in winter suggests also that pearl farmers should not transferspat from hatcheries when temperatures at grow-out locations drop below 25°C (Yukihira etal. 2006) No information was found about the effects of reduced salinities on the largeroysters used by some sectors of the Australian silver pearl industry. The use of largeoysters, however, probably avoids the potential problem of minimal growth in winter.Information about the environmental conditions prevailing at silver-lip pearl oyster farms isscarce. The experimental studies on the growth, survival and condition of silver-lip pearloysters undertaken in two environments in the Great Barrier Reef lagoon differing in termsof SPM and POM concentrations indicate that the growth rate and final condition of oysterscultured in the mainland bay was not significantly different from that at the offshorelocation (Yukihira et al. 2006). This implies that silver-lip pearl oysters are physiologicallyadapted to a wide range of food concentrations and that they could potentially be culturedin a variety of habitats, including areas of the Solomon Islands that are subject to highrainfall and inputs of terrigenous sediments.6.3 Overall ConclusionsAlthough black-lip and silver-lip pearl oyster farming are lucrative industries, there is asurprising lack of basic information on the influence of environmental factors on theirbiology and ecology and on environmental conditions at existing farms and their influenceon culture practices. Information on coral reef habitats within some of the specified regionsof the Pacific Ocean is also lacking. This lack of information hinders assessments about thesuitability of available habitats for growing pearl oysters in the Solomon Islands relative tothose in the other Pacific regions. Despite this, it is clear from the literature sourced that,from an environmental perspective, there is potential for farming of both black-lip andsilver-lip pearl oysters to take place in the Solomon Islands. The turbid waters adjacent tothe leeward side of the mountainous islands are likely to be more favourable for farmingsilver-lip than black-lip pearl oysters.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 27

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20088.0 ACKNOWLEDGEMENTSThis report was written by Dr Theresa Dye and reviewed by Dr Marcus Lincoln Smith.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 28

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 20089.0 REFERENCESAllen, G.R., Kinch, J.P., McKenna, S.A. and Seeto, P. (ed.s) (2003). A Rapid MarineBiodiversity Assessment of Milne Bay Province, Papua New Guinea—Survey II(2000). RAP Bulletin of Biological Assessment No. 29. Conservation International,Washington, DC, USA.Australian Aquaculture Portal (2007). Industry Groups - Pearls. http://www.australianaquacultureportal.com/industrygroups/pearls.htmlBraley, R.D. (1997). Outer Islands Marine Resources Management Training Project. Final report.Asian Development Bank.Bueno, P. Lovatelli, A. and Shetty, H.P.C. (1991). Pearl oyster farming and pearl culture.Regional Seafarming Development and Demonstration Project. Project reportNo.8http://www.fao.org/docrep/field/003/AB726E/AB726E00.htmBuestel, D., Pouvreau, S., Tiapari, J., Bougrier S., Chabirand, J.M., Geairon, P., andFougerouse, A. (1995). Écophysiologie de l’huître perlière: Approche des relationsentre la croissance de l’huître Pinctada margaritifera et le milieu dans le lagon deTakapoto. Rapport IFREMER, RIDRV 95-18 RA, Tahiti, 79 pp.Coeroli, M., De Gaillande, D., Landret, J.P. and Coatanea, D. (1984). Recent innovations incultivation of molluscs in French Polynesia. Aquaculture 39: pp. 45-67.Cook Islands Government (2007). The Cook Islands. Where on earth is the Cook Islands?http://www.cook-islands.gov.ck/cook-islands.phpDalzell, P. and Wright, A. (1986). An assessment of the exploitation of coral reef fisheryresources in Papua New Guinea. In: The first Asian fisheries forum. Asian FisheriesSociety, Manilla, Philippines. (ed.s) Maclean, J.L., Dizon, L.B. and Hosillos, L.V. pp.477-481.Department of Fisheries, Western Australia (1997). Aquaculture planning in Western Australia.Part B Sites and Maps.www.fish.wa.gov.au/docs/pub/AquaPlanning/aquaatlasB.pdfDepartment of Fisheries, Western Australia (2002). Application to Environment Australiaon the pearl oyster fishery. Against the Commonwealth guidelines for theecologically sustainable management of fisheries. For consideration under Part 13Aof the Environment Protection and Biodiversity Conservation Act 1999. pp. 94.www. deh.gov.au/coasts/fisheries/assessment/wa/index.htmlDepartment of Primary Industry, Fisheries and Mines, Northern Territory ( 2006). PearlingIndustry Status Report 2005. In: Fishery Status Reports 2005. Fishery Report No. 85.Department of Primary Industry and Fisheries, Queensland (2007). Annual status report.Queensland East Coast Pearl Fishery 2007.www2.dpi.qld.gov.au/extra/pdf/fishweb/StatusReport-Pearl-2007.pdfDone T.J. and Navin, K.F. (1990). Vanuatu Marine Resources: Report of a biological survey.A project of the Australian International Development Assistance Bureau. AustralianInstitute of Marine Science, Townsville, Australia. 272pp.Doroudi, M.S., Southgate, P.C. and Mayer, R.J. (1999). The combined effects of temperatureand salinity on embryos and larvae of the black-lip pearl oyster, Pinctada margaritifera(L.). Aquaculture Research 30 pp.271.277.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 29

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Dufour, P. (2001). The diversity of the French Polynesian atolls. http://www.com.univmrs.fr/IRD/atollpol/irdpoly/ukdivato.htmFriedman, K.J. and Bell, J.D. (1999). Variation in abundance of blacklip pearl oyster (Pinctadamargaritifera Linne.) spat from inshore and offshore reefs in Solomon Islands.Aquaculture 178, pp. 273-291.Friedman, K.J., Bell, J.D., Gervis, M. and Tiroba, G. (1996). Progress of research on thepotential of farming blacklip pearl oysters in Solomon Islands. SPC Pearl OysterInformation Bulletin No. 9.Friedman, K.J., Bell, J.D., and Tiroba, G. (1998). Availability of wild spat of the blacklip pearloyster, Pinctada margaritifera, from 'open' reef systems in Solomon Islands.Aquaculture 167, pp. 283-299.Friedman, K.J. and Southgate, P.C. (1999). Growout of blacklip pearl oysters, Pinctadamargaritifera collected as wild spat in the Solomon Islands. J Shellfish Res 18, pp. 159-167.Gemmological Association of Australia (2005). Australian gem gallery - A rainbow of gems.The Australian pearling industry and its pearls. http://www.gem.org.au/pearl.htmGervis, M.H. and Sims, N.A. (1992). The biology and culture of pearl oysters (Bivalvia:Pteriidae). ICLARM Studies and Reviews 21: pp. 49.Gosling, E. (2003). Bivalve Molluscs: Biology, Ecology and Culture. Fishing News Books.pp.443.Green, A., P. Lokani, W. Atu, P. Ramohia, P. Thomas and J. Almany (2006). Solomon IslandsMarine Assessment: Technical report of survey conducted May 13 to June 17, 2004.TNC Pacific Island Countries Report No. 1/06. The Nature Conservancy.Hart, A.M. and Friedman. K.J. (2004). Mother-of-pearl shell (Pinctada maxima): Stockevaluation for management and future harvesting in Western Australia. FRDCProject 1998/153, Fisheries Research Contract report no. 10, Department of Fisheries ,Western Australia, 84pp.Haws, M. and Ellis, S. (2000). Aquafarmer information Sheet. Collecting black-lip pearloyster spat. Centre for Tropical and Subtropical Aquaculture Publication No. 144.Huber, M., (1994). An assessment of the status of coral reefs of Papua New Guinea. Mar.Pollut. Bull. 29(1-3):69-73. Marine Pollution Bulletin 29: pp.69-73.Hughes, A. (2006). Benthic Communities. In: Solomons Islands Marine Assessment TechnicalReport of Survey Conducted May 13 to June 17, 2004 (ed.s) Green, A., Lokani, P., Atu,W., Ramohia, P, Thomas, P. and Almany, J. The Nature Conservancy, Indo-PacificResource Centre, Pacific Island Countries Report No. 1/06.Islands Business International (2007). Pearl Industry Eyes $50M value by 2015.http://www.islandsbusiness.com/archives/fiji_business/index_dynamic/containerNameToReplace=MiddleMiddle/focusModuleID=15759/overideSkinName=issueArticle-full.tplJorgensen, C.B. (1990). Bivalve filter feeding: Hydrodynamics, Bioenergetics, Ecology andPhysiology. Olsen and Olsen pp. 140.Lane, I., Oengpepa, C. and Bell, J. (2003). Production and grow-out of the black-lip pearloyster Pinctada margaritifera. Aquaculture Asia 8: pp. 5-7.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 30

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Langy, S. (2006). Pearl culture farming in French Polynesia: overview of activities anddevelopment. SPC Pearl Oyster Information Bulletin #17 – November 2006.Loret, P., Pastoureaud, A., Bacher, C. and Delesalle, B. (2000a) Phytoplankton compositionand selective feeding of the pearl oyster Pinctada margaritifera in the Takapoto lagoon(Tuamotu Archipelago, French Polynesia): in situ study using optical microscopy andHPLC pigment analysis. Marine Ecology Progress Series 199: pp. 55-67.Loret, P., Le Gall, S., Dupuy, C., Blanchot, J., Pastoureaud, A., Delesalle, B., Caisey, X., andJonquières, G. (2000b). Heterotrophic protists as a trophic link betweenpicocyanobacteria and the pearl oyster Pinctada margaritifera in the Takapoto lagoon(Tuamotu Archipelago, French Polynesia). Aquatic Microbial Ecology 22: pp. 215-226.Maniwavie, M.W. (2000). Reef benthos and Motupore Island research centre monitoringprogram. In: The Status of Coral Reefs in Papua New Guinea (ed.) Munday, P. L.Global Coral Reef Monitoring Network, pp. 13-16.Morton, J. (1974). The coral reefs of the British Solomon Islands: a comparative study oftheir composition and ecology. Proceedings of the Second International Coral ReefSymposium, Brisbane pp. 31-53.National Fisheries Authority, Papua New Guinea (2005). Aquaculture.http://www.fisheries.gov.pg/fisheries_aquaculture.htm. Viewed 9 October 2007.Naviti, W. and Aston, J. (2000). Status of coral reef and reef fish resources of Vanuatu.Paper presented at the Regional Symposium on Coral Reefs in the Pacific: Status andMonitoring; Resources and Management 22 - 24 May 2000, Noumea, New Caledonia.Niquil, N., Pouvreau, S., Sakka, A., Legendre, L., Addessi, L., Le Borgne, R., Charpy, L. andDelesalle, B. (2001). Trophic web and carrying capacity in a pearl oyster farminglagoon (Takapoto, French Polynesia). Aquatic Living Resources 14: pp. 165•174.Passfield, R. (1989). Basic requirements to set up a small pearl farm. South Pacific CommissionLibrary, New Caledonia. pp.2Ponia, B. (2000). Cook Islands Coral Reefs: National Status Report.Ponia, B. Napara, T., Ellis, M. amd Tuteru, R. (2000). Manihiki Atoll black pearl farm censusand mapping survey. SPC Pearl Oyster Information Bulletin #14 – December 2000.Research Notes and Reports pp. 4-10.Pouvreau, S., Bodoy, A. and Buestel, D. (1999a). In situ suspension feeding behaviour of thethe pearl oyster, Pinctada margaritifera: combined effects of body size and weatherrelatedseston composition. Aquaculture 181: pp. 91-113.Pouvreau, S., Jonquières, G. and Buestel, D. (1999b). Filtration by the pearl oyster, Pinctadamargaritifera, under conditions of low seston load and small particle size in a tropicallagoon habitat. Aquaculture 176: pp. 295-314.Pouvreau, S., Bacher, C. and Héral, M. (2000a). Ecophysiological model of growth andreproduction of the black pearl oyster, Pinctada margaritifera: potential applicationsfor pearl farming in French Polynesia. Aquaculture 186: pp. 117-144.Pouvreau, S., Tiapari, J., Gangnery, A., Lagarde, F., Garnier, M., Teissier, H., Haumani, G.,Buestel, D. and Bodoy, A. (2000b). Growth of the black-lip pearl oyster, Pinctadamargaritifera, in suspended culture under hydrobiological conditions of Takapotolagoon (French Polynesia). Aquaculture 184: pp. 133-154.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 31

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Pouvreau, S. and Prasil, V. (2001). Growth of the black-lip pearl oyster, Pinctadamargaritifera, at nine culture sites of French Polynesia: synthesis of several samplingdesigns conducted between 1994 and 1999.Quinn, N.J. and Kojis, B.L. (2000). Abundance and diversity of coral populations. In: TheStatus of Coral Reefs in Papua New Guinea (ed.) Munday, P. L. Global Coral ReefMonitoring Network, pp. 5-12.Ramohia, P. (2006). Fisheries resources: commercially important macroinvertebrates.Solomon Islands marine assessment. In: Solomon Islands Marine assessment:Technical report of survey conducted May 13 to June 17, 2004. (eds. Green, A.,Lokani, P., Atu, W., Ramohia, P., Thomas, P. and Almany, J. TNC Pacific IslandCountries Report No 1/06.Richards, A.H., Bell, L.J. and Bell, J.D. (1994). Inshore fisheries resources of Solomon Islands.Marine Pollution Bulletin 29: pp. 90-98.Salvat, B., Hutchings, P., Aubanel, A., Tatarata, M. and Dauphin, C. (2000). The status of thecoral reefs and marine resources of French Polynesia.Sharma, S., Smith, R. & Frost, G. (2001). Water quality analysis, Manihiki Lagoon, CookIslands. SOPAC Technical Report 331, August 2001.Sims, N.A. (1992). Abundance and distribution of the black-lip pearl oyster, Pinctadamargaritifera (L. ) ( Pteriidae; Bivalvia ), in the Cook Islands, South Pacific. AustralianJournal of Marine and Freshwater Research 43: pp.1409-1421.Sims, N.A. (1994). Growth of wild and cultured black-lip pearl oysters, Pinctada margaritifera(L.) (Pteriidae; Bivalvia ), in the Cook Islands. Aquaculture 122: pp.181-191.SPC (2002). SPC Aquaculture Portal. Countries Vanuatu General Information.http://www.spc.int/aquaculture/site/countries/vanuatu/index.asp?ou=pays&country_dir=vanuatu&pays=vanuatu&country_name=VanuatuStoddart, D.R. (1969a). – Geomorphology of the Solomon Islands coral reefs. PhilosophicalTransactions of the Royal Society of London, B 255: pp. 355-382 + pls. 54-59.Stoddart, D.R. (1969b). – Geomorphology of the Marovo elevated barrier reef, New Georgia.Philosophical Transactions of the Royal Society of London, B 255: pp.383-402 + pls. 60-61.Stoddart, D.R. (1969c). – Sand cays of eastern Guadalcanal. Philosophical Transactions of theRoyal Society of London, B 255: pp. 403-432 + pls. 62-68.Sulu, R., Hay, C. Ramohia, P. and Lam, M. (2000). The status of Solomon Islands coral reefs.Global Coral Reef Monitoring Network (GCRMN) Report.Taylor, J.J., Rose, R.A. and Southgate, P.C. (1997). Inducing detachment of silver-lip pearloyster (Pinctada maxima) spat from collectors. Aquaculture 159: pp. 11-17.Taylor, J.J., Southgate, P.C. and Rose, R.A. (2004). Effects of salinity on growth and survivalof silver-lip pearl oyster, Pinctada maxima, spat. Journal of Shellfish Research 23: pp. 375-377.The Ecology Lab (2008). Abundance, Size Structure and Quality of Silver-lip Pearl Oystersin the Solomon Islands. Report prepared for Worldfish Center.Tisdell, C.A. and Poirine, B. (2000). Socio-economics of pearl culture: Industry changes andcomparisons focusing on Australia and French Polynesia. SPC Pearl OysterInformation Bulletin No.14. pp.21-31.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 32

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008Veron, J.E.N. (2000). Coral reefs - an overview. In: State of the Marine Environment Report forAustralia: the Marine Environment - Technical Annex: 1. (ed.) Zann, L.P.http://www.environment.gov.au/coasts/publications/somer/annex1/coralreefs.html#HDR13.Vuki, V., Naqasima, M. and Vave, R. (2000). Status of Fiji’s coral reefs. Global Coral ReefMonitoring Network (GCRMN) Report.Wells, F.E. and Jernakoff, P. (2006). An assessment of the environmental impact of wildharvest pearl aquaculture (Pinctada maxima) in Western Australia. Journal of ShellfishResearch 25: pp. 141-150.Wells, S.M. and Jenkins, M.D. (1988). – Coral reefs of the world, volume 3: Central and WesternPacific. United Nations Environment Programme (UNEP) Regional Seas Directoriesand Bibliographies. International Union for Conservation of Nature and NaturalResources (IUCN), Gland, Switzerland and Cambridge, UK/ UNEP, Nairobi, andRobertson.Kenya, xlix + 329 p. + 30 maps.Werner, T. B. and G. R. Allen (eds.). (1998). A rapid biodiversity assessment of the coral reefsof Milne Bay Province, Papua New Guinea. RAP Working Papers 11. Washington,DC: Conservation International.Yukihira, H., Klumpp, D.W. and Lucas, J.S. (1998). Comparative effects of microalgalspecies and food concentration on suspension feeding and energy budgets of thepearl oysters Pinctada margaritifera and P. maxima (Bivalvia: Pteriidae). MarineEcology Progress Series 171: pp. 71-84.Yukihira, H., Klumpp, D.W. and Lucas, J.S. (1999). Feeding adaptations of the pearl oystersPinctada margaritifera and P. maxima to variations in natural particulates. MarineEcology Progress Series 182: pp. 161-173.Yukihira, H., Lucas, J.S. and Klumpp, D.W. and Lucas, J.S. (2000). Comparative effects oftemperature on suspension feeding and energy budgets of the pearl oysters Pinctadamargaritifera and P. maxima. Marine Ecology Progress Series 195: pp. 179-188.Yukihira, H., Lucas, J.S. and Klumpp, D.W. (2006). The pearl oysters, Pinctada maxima and P.margaritifera, respond in different ways to culture in dissimilar environments.Aquaculture 252: pp. 208-224.Zanini, J.M. and Salvat, B. (2000). Assessment of deep water stocks of pearl oysters atTakapoto Atoll (Tuamotu Archipelago, French Polynesia). Coral Reefs 19: pp. 83-87.Zann, L.P. and Vuki, (2000). The South Western Pacific Islands Region. In: Seas at theMillenium. (ed. Sheppard, C.). Elsevier.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 33

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008TABLESTable 1. Type, total area and characteristics of the coral reef and lagoon habitats associatedwith each of the Cook Islands.Table 2. Geographic location of each of the aquaculture regions in Western Australia, theircoastal characteristics, typical marine habitats, and location of pearl farms.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 34

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl OystersTable 1. Type, total area and characteristics of the coral reef and lagoon habitats associated with each of the CookIslands (Wells 1998).Island Type Area Characteristics of Reefs and Lagoons(km 2 )Manihiki Atoll 5.2Penrhyn Atoll 9.8 Many isletsOuter reef has buttresses, surge channels and deep water nearby. Corals arebest-developed at the south-east end of the lagoon, where waves wash over thereef. Lagoon is about 5 km in diameter and has a maximum depth of 72 m.Two large islets in north-east and west and many small islets at southern endof lagoon.Rakahanga Atoll 4.0Rarotonga High, volcanic 67.0Small lagoon surrounded by reef with two main islets to north and south andseven smaller islets in between them.Fringing reefs are 400-800, 100-200m and 50-100m wide on the south, west andnorth and east coast, respectively. Reef edge is almost continuous. Reef flatsare shallow and covered with sand. Algal ridge is present on the reef.Mangaia Low, volcanic uplifted 71.0Mauke Low, volcanic, raised 18.4Mitiaro Low, volcanic 22.3Atiu Moderate, volcanic, 28.2raisedFringing reef with narrow living reef flat, steep outer reef slope that levels offto a wide terrace at a depth of 30-40 m depthSurrounded completely by a 50-100m wide reef flat dominated by hard reefrock pavement. Outer reef slopes gently to depths of 8-15 m, and then steeplyto 80 m, with few shelves.Fringing reef with narrow living reef flatFringing reef with narrow living reef flat, except on the north side where thereis no reef flat.Takutea Low, lying elongated 1.3 Surrounded by reefsand cayManuae Atoll with two flat coral 22.0sand islets.Palmerston Atoll 2.6Aitutaki Triangular volcanic cone 106.0forming an almost atollShallow closed lagoon surrounded by continuous reef with a single narrowboat passageElongated lagoon with eight islets surrounded by reefLarge (66 km 2 ), shallow (75% < 4.5 m deep) lagoon. Triangular barrier reef, 600-1700 m wide. Steep outer edge on south and east sides and intermediate slopeon west side. Small patches of reef in south and south-west of lagoon.SuwarrowPukapukaAtoll with a nearcontinuous rim and 22isletsTriangular atoll withthree islets at the apicesand several sand banks.Atoll is surrounded by a well developed algal ridge and 100-800 m wide reefflat. Patch reefs < 100 m diameter occur in the central lagoon and small patchreefs around its western edge. Lagoon has 10 km diameter, maximum depth of80 m and covers 133 km 2 . A wide, 10 m deep pass in the north-east allowsgood exchange of water.Atoll is surrounded by a closed reef, except for an artificial passge at NW end.Lagoon is 8 km x 3-5 km and ranges in depth from 10-50 m.Nassua Oval, flat sand cay Narrow reef flat

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl OystersTable 2. Geographic location of each of the aquaculture regions in Western Australia, their coastal characteristics, typical marine habitats, and location of pearlfarmsAquaculture Region Coastal Characteristics Coastal/Marine Habitats Location of Pearl FarmsKimberley Coast - NorthernTerritory border to Cape Levequeon the Dampier PeninsulaMacro-tidal, low wave energy,subject to seasonal cyclones andlarge inputs of fluvial sedimentsduring the wet season.Nearshore areas are characterized by numerousmangrove forests, wide tidal flats and turbid waters.Coastal fringing reefs occur on hard substrata.Numerous mid-shelf and shelf edge islands, banksand reefs, many built on platform coral reefs.Silver-lip oysters farmed in KingSound, Doubtful Bay and KuriBayCanning Coast - Cape Leveque toCape MissiessyVery large tidal range, moderateto low wave energy and littlefluvial inputs.Long sandy beaches in deeply-indented bays flankedby rocky headlands, reefs and sand flats with largemud flats and mangroves at their heads. One group ofoffshore islands (Lacepedes)Carnot Bay, Pender Bay, RoebuckBay and Lacepede IslandsEighty Mile Beach - CapeMissiessy to Cape KeraudrinPilbara Coast - Cape Keraudrin toNorth-West CapeVery large tidal range andmoderate wave energy.Moderate tidal ranges, low waveenergy, influenced by cyclones,periodic run-off and strong tidalflows.Sandy beach sloping to wide, muddy tidal sand flats.Mangroves in small bays.Coastal deltas, barrier islands and lagoons withextensive mangroves backed by wide, supra-tidalflats. Shoreline has long beaches and muddy tidalflats. Numerous islands and coral reefs on RowleyShelf.Oysters cultured onlonglines orin baskets at some sites off EightyMile BeachExmouth Gulf, DampierArchipelago, off PortHedland, Dampier andMontebello Islands.Shark Bay Coast - Point Quobbato Kalbarri. Bernier, Dorre andDirk Hartog Islands consititutethe seaward boundary.Eastern shore of the bayexperiences low wave energy.Leeward and windward side ofthe islands are exposed tomoderate and strong waveaction, respectively.Large marine embayment with world's largestseagrass meadow, small coral reefs, sheltered sandybeaches and low limestone cliffs. Eastern shore hasmangroves and wide tidal flats. Southern part of thebay is hypersaline.Silver-lip oyster hatchery atOyster Creek, Carnarvon. Blacklipoysters are cultured withinShark Bay.Central West Coast - Kalbarri toPerth including Abrolhos IslandsCoast experiences high waveenergy, relatively small tides andlimited freshwater run-off.Long sandy beaches with limestone cliffs andheadlands, sheltered by extensive offshore limestonereef systems with large algae and seagrass bedsinshore. Abrolhos Islands have coral platforms andreefs.Black-lip oysters are cultured inthe Abrolhos Islands

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters Final, June 2008FIGURESFigure 1: Google earth image showing the location of the major coral reef systems in (a)Queensland and (b) Western Australia.Figure 2: Google earth image showing the relative position of (a) the Southern and (b) theNorthern group of the Cook Islands.Figure 3: Google earth image showing the relative position the relative position of the majorgroups of Fijian islands.Figure 4: Google earth image showing the relative position of the major archipelagos inFrench Polynesia.Figure 5: Google earth image showing the Papuan New Guinea (PNG) mainland and PNGislands in the Bismarck and Solomons Islands archipelagos.Figure 6: Google earth image showing the relative position of the major and some of themedium-sized islands in the Solomons Island ArchipelagoFigure 7: Google earth image showing the relative position of the major and some of themedium-sized islands in the Vanuatu Archipelago.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 37

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters(a) Western AustraliaDampierArchipelagoMontebelloArchipelagoNingalooReefExmouthBroomeNorthernTerritoryCarnarvonShark BayWestern AustraliaHoutmanAbrolhos Is.Perth(b) QueenslandCooktownCairnsTownsvilleGreat BarrierReefQueenslandBrisbaneFigure 1: Google earth image showing the location of the major coral reef systems in(a) Queensland and (b) Western Australia.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl Oysters(a) Northern Cook IslandsPenrhynRakahangaPukapukaManihikiNassauSuwarrow(b) Southern Cook IslandsPalmerstonAitutakiManuaeMitiaroTakuteaAtiu MaukeRarotongaMangaiaFigure 2: Google earth image showing the relative position of the islands in (a) thenorthern and (b) the southern Cook Islands.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl OystersRotumaRotumaVanua LevuVanua LevuYasawa GroupRingold IslesYasawa GroupTavenuiTavenuiRingold IslesVitiVitiLevuLevuLomaivitiGroupLomaivitiGroupKadavu andLau Groupother Is.Kadavu andMoala Group Moala Groupother Is.Lau GroupFigure 3: Google earth image showing the relative position of the major groups of Fijian islands. .The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl OystersMarquesas Is.SocietyArchipelagoTuamotuArchipelagoGambier Is.Austral Is.Figure 4: Google earth image showing the relative position of the major archipelagos in French Polynesia.The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl OystersNorth Western Is.ManusNew IrelandNew GuineaBismarckArchipelagoNew BritainBukaBougainvilleD’Entrecasteaux Is.PortMoresbyMilne Bay ProvinceMilne Bay ProvinceLouisiadeArchipelagoFigure 5: Google earth image showing the Papuan New Guinea mainland and major islands in the Bismarck and Solomons Islandsarchipelagos.The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl OystersChoiseulShortlandIslandsNew GeorgiaSantaIsabelRussellIslandsFloridaIslandsMalaitaGuadalcanalSan CristobalFigure 6: Google earth image showing the relative position of the major and some of the medium-sized islands in the Solomons IslandArchipelagoThe Ecology Lab Pty Ltd – Marine and Freshwater Studies

Suitability of Habitats for Growth of Black-Lip and Silver-Lip Pearl OystersTorres Is.Banks Is.EspirituSantoMalakulaEpiMaewoPentecostShepherd GroupEfateErromangoTannaAnatomFigure 7: Google earth image showing the relative position of the major and mediumsizedislands in the Vanuatu archipelago.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Report to:World Fish CenterWater Temperature and Cyclone Frequency in theSolomon Islands and other Key Regions of the Pacific:Implications for Pearl FarmingFINALJune 2008

Water Temperature and Cyclone Frequency in theSolomon Islands and other Key Regions of the Pacific:Implications for Pearl FarmingJune 2008Report Prepared for:World Fish CenterJalan Batu MaungBatu Maung,11960 Bayan Lepas,Penang,MalaysiaReport Prepared by:The Ecology Lab Pty Ltd4 Green StreetBrookvale, NSW, 2100Phone: (02) 9907 4440Report Number – 55/0607CReport Status – Final 5 June 2008© This document and the research reported in it are copyright. Apart from fair dealings for the purposes ofprivate study, research, criticism or review, as permitted under the Copyright Act 1968, no part may bereproduced by any process without written authorisation. Direct all inquiries to the Director, The Ecology LabPty Ltd at the above address.

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008The Ecology Lab Pty Ltd – Marine and Freshwater StudiesTABLE OF CONTENTSSummary ................................................................................................................................................i1.0 Introduction ....................................................................................................................................12.0 Sea Temperatures..........................................................................................................................22.1 Introduction ...............................................................................................................................22.2 Measurement of Sea Surface Temperature............................................................................22.3 In-Situ SST Measurements from Key Regions of the South Pacific and Australia ..........42.3.1 Black Pearl Farms................................................................................................................42.3.1.1 Cook Islands ................................................................................................................42.3.1.2 French Polynesia .........................................................................................................42.3.2 Silver Pearl Farms ..............................................................................................................52.3.3 Other Locations ..................................................................................................................52.3.3.1 Northern Australia......................................................................................................52.3.3.2 Cook Islands ................................................................................................................62.3.3.3 Fiji ..................................................................................................................................62.3.3.4 French Polynesia .........................................................................................................72.3.3.5 Papua New Guinea.....................................................................................................72.3.3.6 Solomon Islands ..........................................................................................................82.3.3.7 Vanuatu ........................................................................................................................82.4 SST Measurements Derived from Satellites ...........................................................................82.4.1 Modern Average Global SST Dataset..............................................................................82.4.2 Surface Temperature Search Tool....................................................................................92.4.3 SST web atlas for the Great Barrier Reef.......................................................................102.4.4 NOAA’s Coral Reef Watch Program.............................................................................103.0 Tropical Cyclones........................................................................................................................113.1 Introduction .............................................................................................................................113.2 Exposure of Key Pacific Regions to Tropical Cyclone Activity........................................123.3 The Influence of Climate Change on Tropical Cyclones ...................................................143.4 Impact of Tropical Cyclones..................................................................................................143.4.1 General Impacts................................................................................................................143.4.2 Impact on the Physical Environment of Key Pacific Island Groups.........................153.4.3 Impacts on Pearl Fishing and Farming .........................................................................154.0 Conclusions..................................................................................................................................164.1 Sea Temperature......................................................................................................................164.2 Risk of Damage to Pearl Farms from Tropical Cyclones...................................................17

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20084.3 Overall Conclusion .................................................................................................................175.0 Acknowledgements ....................................................................................................................196.0 References ....................................................................................................................................20Tables ...................................................................................................................................................25Figures .................................................................................................................................................27The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008SUMMARYIntroductionThe European Union has funded a project entitled ‘Stimulating investment in pearl farmingin the Solomon Islands’. The objective of this project is to provide offshore pearl companieswith sufficient information to determine the potential for long-term investment in pearlfarming in the Solomon Islands. The World Fish Center sub-contracted The Ecology Lab PtyLtd to prepare a report on water temperatures and cyclone frequencies, in terms ofadvantages and disadvantages for pearl farming in the Solomon Islands relative to FrenchPolynesia, Cook Islands, Australia, Fiji, Vanuatu and Papua New Guinea.Knowledge of sea temperature ranges at various locations would be advantageous tooffshore pearl companies, because temperature influences the rate of deposition of nacre onoyster shells and implanted nuclei as well as the reproductive development, spawningactivity, survival, recruitment, growth, condition of cultured stocks and their susceptibilityto disease. Knowledge of regional differences in cyclone activity would also be useful,because the accompanying heavy rainfall, high winds and storm surges can damage pearlfarms and associated infrastructure.Sea TemperatureLittle is known about the temperature requirements of black-lip and silver-lip oysters. Theonly information that is available indicates that the optimum temperature ranges of black-lip(Pinctada margaritifera) and silver-lip (Pinctada maxima) pearl oysters on the north-east coastof Australia are 23 – 28 °C and 23 – 32 °C, respectively. This implies that silver-lip pearloysters may be better suited to culture in tropical latitudes than black-lip pearl oysters.These ranges may not be applicable to other parts of the species geographic ranges,particularly if their responses to temperature vary with latitude.Sea temperature is traditionally measured in situ by either dipping a thermometer into abucket of water drawn from the sea surface, or using electrical temperature probes deployedin the intake port of large ships or on either fixed or drifting buoys. Sea surface temperature(SST) measurements are also derived from sensors on board polar-orbiting satellites thatrecord the amount of visible and infrared radiation reflected and/or emitted from theEarth's surface. These instruments take thousands of measurements of broad swaths of theEarth each day and/or night, resulting in concurrent data sets of the entire planet. Severaldifferent SST data products have been derived from satellite-based sensors, depending onthe type of sensor used and the type and version of the algorithms used to process the data.The products also vary in terms of the time span covered and their spatial resolution on theground. Records from temperature probes, SEAFRAME gauges and satellite-borne sensorscould all be used to identify potential farm locations with suitable prevailing temperatureregimes. Products with fine–scale spatial resolution, however, are likely to be most relevantto prospective pearl farmers.In situ sea temperature measurements taken by probes deployed for lengthy periods at anappropriate depth were obtained from locations in the Cook Islands and French Polynesia,where there are extensive black-lip pearl farms, and from locations in Western Australiaadjacent to areas with silver-lip pearl farms. Temperatures measured in the Cook Islandlagoons ranged from ca 28 – 31 °C, whereas those in the French Polynesian lagoons rangedfrom ca 26 – 31 °C and 21 – 29 °C, depending on latitude, and those off high islands variedfrom 25 – 30 °C. In other parts of the world, black-lip pearls oysters are cultured attemperatures ranging from 17 – 30 °C (Japan) and 21 – 34 °C (Sudan). The mean monthlyThe Ecology Lab Pty Ltd – Marine and Freshwater StudiesPage i

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008temperature records for silver-lip pearl oyster farms in Western Australia ranged from ca 19– 30 °C, 21 – 31 °C and 25 – 32 °C. This implies that black pearl farms are either located inareas where the water temperature is outside the optimum temperature range or that theoptimum ranges of this species in other countries differs markedly from that in north-eastAustralia. Some of the Western Australian silver-lip pearl farms are located in areas wherethe minimum water temperature is below the lower limit of the optimum temperature rangeor where the maximum water temperature is close to the upper limit of the optimum range.If global warming causes a 0.4-1.0º C increase in the sea temperature off the north-west coastof Australia as is predicted, temperatures at some farm locations could exceed the optimaltemperature range of silver-lip oysters.Temperature probes have also been deployed at several other locations in northern Australiaand Fiji and from one location in Papua New Guinea. The long-term data set obtained froma probe deployed at one particular location in Fiji indicates that there is considerable interannualvariability in SST. This suggests that time series data would probably be more usefulthan average monthly SST estimates, for gauging prevailing temperature regimes.The sea-level fine resolution acoustic measuring (SEAFRAME) gauges installed at singlelocations in the Cook Islands, Fiji, Papua New Guinea, Solomon Islands and Vanuatu in theearly 1990s provide contemporaneous records of SST. These indicate that the temperaturerange off Papua New Guinea (4.8 °C) and the Solomon Islands (5.4 °C) is narrower than thatoff the Cook Islands, Fiji and Vanuatu (8.2-8.5 °C). The records also show that mean watertemperatures off Papua New Guinea and the Solomon Islands were about 2° C cooler thannormal during the 1997/1998 El Niño event.SST measurements derived from sensors carried on board polar-orbiting satellites were alsoexamined. Comparable SST data for locations in the regions of interest were obtained fromthe Modern Average Global SST Dataset produced by the US Geological Survey. These datawere derived from weekly measurements taken by an Advanced Very High ResolutionRadiometer sensor over the period October 1981 to December 1990. More recent monthlySST climatology data were obtained for locations around Australia by using the surfacetemperature search tool maintained by the Australian Department of Defence. Time seriesdata for five locations on the north-east coast of Australia were obtained from the SST webatlas for the Great Barrier Reef region produced by the Australian Institute of Marine Scienceand CRC Reef Research Centre. Time series for five locations in Australia and two locationsin the South Pacific were also obtained from the National Oceanic and AtmosphericAdministration’s Coral Reef Watch Program.The limited information that is available on sea temperatures in Solomon Islands indicatesthat the prevailing regimes are similar to those in some areas of the Cook Islands and FrenchPolynesia, where there are productive black-lip pearl farms. Similar temperature regimesalso prevail in some areas of Vanuatu, Fiji and Papua New Guinea. The fact that thetemperature of the water at locations in the Solomon Islands and Papua New Guinearegularly exceeds 29 °C in summer, however, implies that these regions may be moresuitable for culturing silver-lip than black-lip pearl oysters. The temperature regimes atmost of the locations in Fiji and Vanuatu, in contrast, appear to be suitable for culturing bothspecies of pearl oysters, but silver-lip pearl oysters do not occur naturally in these waters.On the basis of our current knowledge, it is not possible to say whether the sea temperatureregime in Solomon Islands would be more advantageous for pearl farming than that in theother South Pacific nations considered.The Ecology Lab Pty Ltd – Marine and Freshwater StudiesPage ii

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008Cyclone ActivityTropical cyclones are non-frontal low pressure systems characterised by sustained gale forcewinds in excess of 63 km/h and wind gusts greater than 90 km/h near their centre and thatpersist for at least six hours. They vary in intensity, life cycle, pattern of movement, size andimpact. Their activity and intensity also varies within seasons, between years, decades andover multi-decadal timescales. In the Australian/Southwest Pacific basin, tropical cyclonesgenerally occur between late October/early November and early May and peak in lateFebruary/early March. The total number of tropical cyclones per year varies markedly,with two events being recorded in this basin in 1981 and 16 in 1971. The annual variation incyclone numbers has been linked with local sea surface temperature before and at the startof the cyclone season and the El Niño-Southern Oscillation (ENSO) phenomenon.The frequency of tropical cyclones also varies spatially. Between 1970/1971 and 2003/2004,the South Pacific region experienced 8.6 cyclones on average per season, 4.1 of which weresevere and 1.7 intense, whereas the Australian region experienced 12.8 cyclones per season,6.3 of which were severe and 2.5 intense. The South Pacific region was also exposed totropical cyclones and severe cyclones for fewer days on average than the Australian region.The frequency of cyclones also varies across the South Pacific, with the greatest number onaverage occurring around Vanuatu, followed in turn by Fiji, the Cook Islands, FrenchPolynesia and the Solomon Islands. Cyclones rarely hit Papua New Guinea. In Australia,tropical cyclones are more frequent in the northwest, between Exmouth Gulf and Broome,and in northeast Queensland, between Port Douglas and Maryborough. In widespreadnations, such as French Polynesia, the risk of cyclones varies across the archipelagos.During El Niño years, there is a marked shift in the regional pattern of cyclone risk, withactivity being greater than on average in the vicinity of Vanuatu, Fiji, the Cook Islands andFrench Polynesia, of similar incidence in the Solomon Islands, but less frequent off the northAustralian coast. During La Niña years, cyclones are more common than on average in thevicinity of Vanuatu, New Caledonia and the South Coral Sea, but not evident beyondlongitude 150° W. Whilst cyclones are clearly less frequent in Solomon Islands than in mostpearl farming areas, it is not possible, on the basis of our current knowledge, to determinewhether pearl farming would be more advantageous in Solomon Islands than in other SouthPacific nations.The occurrence and intensity of tropical cyclones may change with global warming. InAustralia, there is expected to be a decrease in total number of tropical cyclones per year, butan increase in the proportion of the more intense categories of cyclones. Cyclones that hitthe east coast are expected to persist longer than at present. In the South Pacific, there isexpected to be little change in cyclone frequency, but an increase in their intensity andlifespan. Tropical cyclones are also expected to spread further east and track further souththan at present.The gale force winds accompanying cyclones can cause extensive property damage, turnairborne debris into missiles and generate rough seas. The heavy rainfall that occurs as thecyclone passes over can cause extensive flooding, which, in turn, can result in extensivedamage. The storm surge that accompanies some tropical cyclones is another potentiallydestructive phenomenon, particularly if it coincides with high tide.The impact of tropical cyclones on the physical environment depends on their frequency,intensity, speed of movement, longevity, size and proximity to land. The physical featuresof the landscape also influence their response to the geomorphic and hydrological processestriggered by cyclones. Low-lying coral islands, such as the atolls of Cooks Islands andFrench Polynesia, are prone to overtopping by storm surge and wave action generated byThe Ecology Lab Pty Ltd – Marine and Freshwater StudiesPage iii

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008cyclones. On the high islands of Fiji, Papua New Guinea, Solomon Islands and Vanuatu, themajor impacts are landslides on hills and deposition of sediment in valley bottoms resultingfrom heavy cyclonic rainfall.Tropical cyclones within the Australian region have caused the loss and stranding ofpearling boats, demolishment of pearling camps and numerous deaths. The accompanyingheavy rainfall, high winds and storm surges have also caused widespread movement ofpearl oysters and equipment on experimental lines and commercial oyster farms, damagedbenthic habitats, caused fluctuations in the availability of wild stock and reduced thelandings of the pearl oyster fishery in Exmouth Gulf. In 2000, damage to pearling facilitiesand loss of eight boats in the vicinity of Broome resulting from a tropical cyclone wasestimated to have cost the industry A$6 million. A tropical cyclone that hit the Cook Islandsin 1997caused the loss of harvested pearls and equipment, damaged above-waterinfrastructure and villages, resulted in the loss of 19 lives, but caused only limited damage tounderwater farming operations. The reduction in number and total area of pearl farms inManihiki Atoll that occurred between 1996 and 1999 has been linked with the impact of thiscyclone. In 1983, French Polynesia was hit by five cyclones; the attendant 4-5 m rise in sealevel and 8-10 m high waves destroyed boats, fishing equipment and pearl aquaculture raftsand submerged many villages on the atolls.General ConclusionsIn the South Pacific region, the identification of potential culture sites for black-lip andsilver-lip pearl oysters is hindered by the lack of information on latitudinal differences intheir optimum temperature ranges and the lack of easily-accessible information onprevailing sea temperatures. Whilst sea temperature and cyclone frequency are important,they are only two of a range of environmental factors that could influence production ofpearl oysters. The identification of potential culture sites should also be based on a soundknowledge of fluctuations in other environmental parameters, particularly food and siltlevels, plus an appreciation of the vulnerability of different areas to earthquakes, tsunamis,sea-level rise, volcanic eruptions and large-scale pollution events. As a number of variablesoperating over spatial scales ranging from regional to site-specific determine the suitabilityof a location for pearl farming, it is impossible, given our current state of knowledge, to saywhether any one variable confers a significant advantage or disadvantage for a particularlocation.Due cconsideration should also be given to ways of avoiding or minimizing damage to pearlfarms. The development of better advance cyclone warning systems could enable farmers tomove longlines into deeper water and bring portable equipment ashore before weather andsea conditions deteriorate. It may also be possible to cyclone proof sub-surface farminfrastructure by using better attachments or “bunching up” longlines on the lagoon floor toreduce impacts from surges.The Ecology Lab Pty Ltd – Marine and Freshwater StudiesPage iv

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20081.0 INTRODUCTIONThe European Union has recently funded a project entitled ‘Stimulating investment in pearlfarming in Solomon Islands’. The primary objective of this project is to provide offshorepearl companies with sufficient information to determine the potential for long-terminvestment in pearl farming in the Solomon Islands. Information on the following aspects iscurrently being compiled for this project:• Publications on the availability and culture of black-lip (Pinctada margaritifera) pearloysters in the Solomon Islands;• Availability and quality of silver-lip (Pinctada maxima) pearl oyster resources in theSolomon Islands;• Availability of suitable habitats and environmental conditions for the growth of black-lipand silver-lip pearl oysters in the Solomon Islands and pearl-producing regions of theSouth Pacific;• The investment climate in the Solomon Islands;• Policy guidelines for the development of environmentally and financially sustainablepearl farming in the Solomon Islands; and• Offshore pearl companies most likely to consider investing in pearl farming in theSolomon Islands.In February 2007, The World Fish Center commissioned The Ecology Lab Pty Ltd to providea number of consultancy services for the EU project, including preparation of the followingreport on water temperatures and cyclone frequencies, in terms of advantages anddisadvantages for pearl farming in the Solomon Islands with other locations in the Pacific,specifically French Polynesia, Cook Islands, Australia, Fiji, Vanuata and Papua New Guinea.The search for information from Australian waters has been limited to areas in which blacklipand silver-lip pearl oysters occur. This area extends from Champion Bay (29° S) inWestern Australia across the northern coast of Australia to Moreton Bay (28° S) in southernQueensland in the case of black-lip pearl oysters and from 25° S on the west coast across thenorthern coast to 20° S on the east coast for silver-lip oysters (Hynd 1955; Gervis and Sims1992).Knowledge of sea temperature ranges at various locations would be advantageous tooffshore pearl companies, because temperature influences the rate of deposition of nacre onoyster shells and implanted nuclei (Cahn 1949; Watabe 1952; Alagarswami 1975 in Gervisand Sims 1992), as well as reproductive development, spawning activity, survival,recruitment, growth, condition and health of cultured stocks (Gervis and Sims 1992;Department of Fisheries, Western Australia 2002; Pass et al. 1987). Knowledge of regionaldifferences in cyclone activity is also important, because the various phenomena associatedwith cyclones can damage pearl farms and associated infrastructure. They should also beaware of the potential impacts global warming may have on sea temperatures and tropicalcyclone activity.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 1

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20082.0 SEA TEMPERATURES2.1 IntroductionBlack-lip pearl oysters occur across a wide latitudinal and longitudinal range, having beenrecorded in the Indian and Pacific Oceans, eastern Mediterranean and Ryukyu Archipelago(Gervis and Sims 1992). Silver-lip pearl oysters are restricted in their geographicdistribution to tropical waters in the central Indo-Pacific region. The different geographicdistributions of these species suggest that their optimum temperature ranges are also likelyto differ markedly. The only available information about the optimum temperature rangesof black-lip and silver-lip pearl oysters comes from studies done off the Great Barrier Reefon the north-east coast of Australia (Doroudi et al 1999; Yukihira et. al. 2000). The optimaltemperature ranges reported in these studies may not be applicable throughout the speciesgeographic ranges, particularly if the responses of black-lip and silver-lip pearl oysters totemperature vary with latitude.Doroudi et al. (1999) noted that normal development of black-lip oyster embryos occurredonly between 25 °C and 30 °C, that growth of larvae was optimal between 26 °C and 29 °Cand that temperatures greater than 35 °C were lethal for larvae. Survival of larvae wasgreatest, but growth was slow, close to 20 °C, the lowest temperature examined.Yukihira et al. (2000) found that the clearance rate, absorption efficiency, amount of energyabsorbed, respiration rate, excretion and hence Scope for Growth (i.e. energy available tosexually mature animals for growth and reproduction) of black-lip and silver-lip pearloysters were much lower at 19 °C than between 23 °C and 32 °C. The clearance rate andamount of energy absorbed by black-lip oysters declined between 28 °C and 32 °C, but thatof silver-lip oysters remained fairly constant. The increase in absorption efficiency of blacklippearl oysters was less marked that of silver-lip pearl oysters between 19 °C and 32 °C.The respiration rate of black-lip pearl oysters increased markedly between 28 °C and 32 °C,whereas that of silver-lip pearl oysters only increased slightly over this range. Black-lipoysters excreted less energy than silver-lip oysters over this temperature range. Hightemperatures had a marked effect on the rate of ammonia excretion in both species. TheScope for Growth of black-lip pearl oysters was adversely affected by both low (19 °C) andhigh (32 °C) temperatures, whereas that of silver-lip oysters was affected mostly by lowtemperatures. On the basis of these results, Yukihira et al. (2000) concluded that the optimaltemperature ranges for black-lip and silver-lip oysters were 23-28 °C and 23-32 °C,respectively. This implies that silver-lip pearl oysters may be better suited to culture intropical latitudes, such as Solomon Islands, than black-lip pearl oysters or in shallow areaswhere temperatures are more variable.2.2 Measurement of Sea Surface TemperatureThe temperature of the sea surface (SST) can be measured in situ by either dipping athermometer into a bucket of water drawn manually from the sea surface, measuring thetemperature of water in the intake port of large ships or using electrical temperature probesdeployed at a specific depth on fixed or drifting buoys (Reddy 2001). The most exact andrepeatable measurements come from fixed buoys equipped with robust electricaltemperature probes located at a particular depth (e.g. 1 m) below the water surface (NOAACoastal Services Centre undated). In situ temperature measurements have two majorshortcomings: the spatial coverage of the data is limited and there may be considerableThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 2

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008variation in measurement error from one observation to the next, depending on the methodsemployed (Metoffice UK, undated). Measurements taken from the intake of ships, forexample, are not consistent, because the depth of the water intake and where thetemperature is measured vary from vessel to vessel.An alternative remote method of SST measurement based on data collected by infra-redradiometers on board satellites has been in operation since 1978. One of the principalinstruments used to measure SST from space is the Advanced Very High ResolutionRadiometer (AVHRR) carried on board the polar-orbiting satellites operated by the NationalOceanic and Atmospheric Agency (NOAA) (NASA Oceanography 2005). The AVHRR hasan array of five small sensors that record the amount of visible and infrared radiationreflected and/or emitted from the Earth's surface. This instrument takes thousands ofmeasurements of broad swaths of Earth each day and night, resulting in concurrent data setsof the entire planet (National Atlas of the United States 2007). Two other satellite-bornesensors, the Moderate-Resolution Imaging Spectroradiometer (MODIS) and AdvancedMicrowave Scanning Radiometer for EOS (AMSR-E) are also commonly used to measureSST (NASA Oceanography 2005). MODIS, like AVHRR, uses a radiometer to measure thethermal infrared radiation given off by the surface of the ocean, but is sensitive to fivedifferent wavelengths of radiation and can therefore provide more detailed SSTmeasurements than AVHHR (NASA Oceanography 2005). The MODIS sensor has aviewing swath width of 2,330 km and scans the entire surface of Earth every one to twodays. Its detectors measure 36 spectral bands between 0.405 and 14.385 µm and acquire dataat three spatial resolutions: 250 m, 500 m, and 1,000 m (NASA Jet Propulsion Laboratory2007). AMSR-E is a passive microwave radiometer that measures radiation from the oceansurface. The measurements derived from satellite-borne sensors are corrected for the effectsof atmospheric water vapour which reduce the strength of the signal emitted and arecalibrated and quality controlled against SST data collected from ships and drifting buoys,which are co-located in both space and time.Satellite-borne sensors provide SST data over much large spatial scales than traditionalmethodologies, but there are a number of problems associated with their use. First, infra-redsensors take radiation measurements from the top "skin" of the ocean, a layer less than 0.1mm thick, rather than bulk SSTs (Metoffice UK, undated). The temperature of the “skin” isusually lower than the bulk SST, because of the loss of radiant and latent heat throughevaporation and mixing. The “skin” temperature also varies during the day, because ofdiurnal solar heating at the sea surface. This problem can be overcome by restricting data tonight-time measurements. Long-term trends in SST derived from AVHRR and MODISsensors also tend to have a “fair weather” bias, because these instruments cannot seethrough cloud cover (NASA Oceanography 2005). SST data may consequently be sparse insome seasons or in some regions of the world. The AMSR-E sensor, however, is able tomeasure radiation from the ocean surface through most types of cloud cover. Variousalgorithms have been developed to correct for signal attenuation by atmospheric effects.Despite these limitations, a number of SST data products have been derived from satellitebasedsensors, including near real-time images, contour charts, analysed fields, SSTanomalies, maps of coral bleaching hot spots and charts showing degree heating weeks, anindicator of the accumulation of thermal stress that coral reefs have experienced over thepast 12 weeks. The products that are available depend on the type of sensor used and thetype and version of the algorithms used to process the data. They also vary in terms of thetime span covered and their spatial resolution on the ground. SST data derived from theNASA MODIS sensors on board the Terra and Aqua satellites, for example, are availablefrom February 2000 and from July 2002 to present, respectively. The data from bothThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 3

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008satellites are available at four temporal scales (daily, 8 - day, monthly and annual) and twospatial scales (4.63 and 9.26 km) (NASA Jet Propulsion Laboratory 2007). SST data derivedfrom AVHRR Pathfinder version 4.0 are available from 1985 to July 2003 at three temporalscales (daily, 8 - day, monthly) and three spatial scales (9 km, 18 km and 54 km), while thatfrom AVHRR pathfinder version 5.0 are available from 1985 to 2006 at six temporal (daily, 5-day, 7–day, 8-day, monthly and annually) and one spatial scale (4 km). The maximumresolution of the SST products derived from AVHRRs , for example, varies from 1.1 km(Composite) to 9 km (Pathfinder) and 18 km (MCSST). AMSR-E has a coarser resolutionthan the thermal infrared sensors. Fine resolution data products are more relevant to pearlfarming ventures, because the SSTs of waters immediately overlying coral reefs are usuallysomewhat higher than the SSTs observed offshore by satellite-borne sensors (Strong et al.1996).2.3 In-Situ SST Measurements from Key Regions of the South Pacific andAustralia2.3.1 Black Pearl Farms2.3.1.1 Cook IslandsIn November 2003, The Ministry of Marine Resources assisted by the South Pacific AppliedGeoscience Commission (SOPAC) installed oceanographic monitoring buoys whichautomatically record a variety of parameters, including SST, at hourly intervals withinManihiki and Penrhyn lagoons. The data recorded were retrieved daily with an uplink viasatellite phone, automatically updated on the SOPAC web page, downloaded from the webpage and disseminated to pearl farmers on a weekly basis through the Ministry of MarineResources (McKenzie 2004). The objective of this monitoring was to provide farmers withan early warning system of environmental conditions that may cause disease outbreaks inpearl oysters, so that they could adjust their farming practices. The mean monthly seatemperature over the period the buoys were deployed (November 2003 to January 2005)varied from 28.3 °C (August 2004) to 30.6 °C (December 2004) at Manihiki and from 28.6 °C(July 2004) to 30.1 °C (December 2004) at Penrhyn (Figure 1).2.3.1.2 French PolynesiaA probe deployed within Takapoto Lagoon (14°63’ S, 145° 21’ W) between July 1990 andSeptember 1991 indicated that the mean water temperature varied from 26.5 - 30.5 °C(Buestel et al. 1995). The annual cycle was divided into four distinct periods: a relativelycold period between July and September characterized by temperatures between 26.5 °C and27.5 °C, a warm period between December and April with temperatures between 29.5 °Cand 30.5 °C and two periods of rapid change in October-November and May to June.Measurements taken on calm days during summer (January to March 1991) indicated thatthere was a 0.7 °C variation in mean water temperature between 06h00 and 14h00. Asubsequent study in Takapoto Lagoon, involving the deployment of a multi-parameterprobe over the period March 1997 to April 1998, indicated that the temperature varied from26 °C (August) to 31 °C (March) (Pouvreau et al. 2000a).Similar temperature ranges have been recorded in Takaroa, Manihi, Rangiroa and Fakarevalagoons, but the temperature of the water around the high islands of Tahiti and Tahaa-Raiatea situated further south is slightly cooler, varying from 25.3 - 29.5 °C and 25.5 - 29.7The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 4

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008°C, respectively (Pouvreau and Prasil 2001). The water temperature in Mangareva Lagoon,situated even further south and to the east (23° 10’S, 134° 95’W), varies from 21.3 - 28.8 °C(Pouvreau and Prasil 2001). During El Niño years, the water temperature in TakapotoLagoon may reach 31.5 °C (Pouvreau et al. 2000b). In November 1985, vertical temperatureprofiles were measured over a 3 day period in Rangiroa Lagoon (Rougerie 1985). Theseindicated that the temperature of the water down to a depth of 30 m was similar to that atthe surface.In other parts of the world, black-lip pearl oysters are cultured in water with much morevariable temperature regimes. For example, at culture sites at Dongonab Bay, Sudan andKabira Bay, Japan temperatures range from 21 – 34 °C and 17 – 30 °C, respectively (Reed1966; Sugiyama and Tomori 1988).The temperature ranges reported above suggest that black pearl farms are either located inareas where the water temperature is outside the optimum temperature range or that theoptimum ranges in other countries differs markedly from that in north-east Australia.2.3.2 Silver Pearl FarmsCSIRO Marine Research (2003) has compiled coastal ocean temperature statistics for variouslocations off the West Australian coast, including two silver-lip pearl oyster farms located inRoebuck Bay near Broome (18° 2’ S) and Whalebone Island in Exmouth Gulf (22° 11’ S),respectively. The mean monthly sea temperature varied from 21.4 °C (July) to 30.9 °C(January) in Roebuck Bay and from 19.5 °C (August) to 29.7 °C (February) in Exmouth Gulf(Figure 2a). These data are based on measurements taken over different study periods andat different depths (1992 to 1998 near the seabed in 12 m of water in Roebuck Bay versus1994 to 1998 and 1 m above the seabed in about 6 m of water at Whalebone Island) and arenot therefore directly comparable. The water temperature at a silver-lip pearl farm in KuriBay, Western Australia ranged from 25-32 °C (Pass et al. 1987).The temperature ranges reported above suggest that some Western Australian silver pearlfarms are located in areas where the minimum water temperature is below the lower limit ofthe optimum temperature range and that some are situated in areas where the maximumwater temperature is close to the upper limit of the optimum range.2.3.3 Other Locations2.3.3.1 Northern AustraliaCSIRO Marine Research (2003) has also compiled coastal ocean temperature statistics forthree other locations off the North West Australian coast. The mean sea temperature rangesfor these locations are depicted in Figure 2b and are as follows:• Barrow Island (20° 48’ S) - 21.6 °C in August to 29.0 °C in March, with temperatures at adepth of 15 m similar to those on the surface;• Osprey Bay at Ningaloo Reef (22° 14’S) - 22.2 °C in August to 27.1 °C in March at a depthof about 5 m.;• Entrance to Shark Bay (26° 8’S) - 20.9 °C in October to 23.8 °C in March/April).It should be noted that the temperatures at the entrance to Shark Bay are unlikely to berepresentative of the Bay itself, because of the influence of strong tidal flows (CSIRO MarineResearch 2003).The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 5

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008The annual sea temperature range has also been recorded in outer (37 m depth) and inner(11 m depth) waters of the Dampier Archipelago, North Western Australia. These recordsindicate that the annual range for these waters is approximately 22–30 ºC and 20–30 ºC,respectively, and that minimum and maximum readings occurred in July/August andFebruary/March (Woodside Petroleum Development Pty. Ltd, 1979a, b in Jones 2004). Itwas also noted that temperatures within shallow embayments in the archipelago can rangefrom 18 ºC in winter to 34 ºC in summer (Jones 2004).In the late 1980s/early 1990s, the Australian Institute of Marine Science installed a series ofremote weather stations on the Great Barrier Reef (GBR) in Queensland, four of whichmeasure sea temperature at a depth of ~1 m at low tide. (AIMS 2003). The mean monthlytemperature ranges, daily minimum and maximum records for these stations from theircommencement of operation until July 2000 are as follows:• Agincourt Reef (16° 2’S, 145° 49’E) - 24.0 ºC to 28.6 ºC, 22.6 ºC and 31.7 ºC;• Myrmidon Reef (18° 16’S, 147° 22’E) - 24.2 ºC to 28.9 ºC, 22.1 ºC and 29.5 ºC;• Davies Reef (18° 50’S, 147° 41’E) -23.4 ºC to 28.4 ºC; 22 ºC and 30.8 ºC;• Hardy Reef (19° 44’S, 149° 10’E) – 22.3 º C to 28.4 º C, 20.8 ºC and 30.0 ºC.The pattern of change in temperature through time was consistent across all four stationswith peaks occurring in February and troughs in August (Figure 3).In the mid-1990s, the Great Barrier Reef Marine Park Authority established a long-term seatemperature monitoring program based on in situ data loggers installed at representativesites on and adjacent to the Great Barrier Reef, on the north-east coast of Australia. Loggershave been deployed at three levels: on the reef flat at the astronomical low tide level, on theupper reef slope at depths ranging from 5-9 m and on the lower reef slope at depths of about20m.2.3.3.2 Cook IslandsWells and Jenkins (1988) indicate that the mean sea surface temperature in the Cook Islandsvaries from 25.5 °C in June to 27.3 °C in January.The SEAFRAME (Sea Level Fine Resolution Acoustic Measuring Equipment) gauge installedin Avaitu Harbour, Rarotonga in February 1993 indicates that sea temperatures since thenhave varied from a minimum of 22.0 °C in August 1998 to a maximum of 30.2 °C inFebruary 2002 (Bureau of Meteorology, Australia 2006a).2.3.3.3 FijiWells and Jenkins (1988) indicate that the sea temperature in Fiji has an annual range of 6 °C,reaches a maximum of 30 °C in summer and is always greater than 20 °C.Underwater temperature recorders were deployed at a depth of approximately 10 m at SuvaBarrier Reef in September 1996 and at Vuna Point, Taveuni in July 1997 as part of the SeawaterTemperature Monitoring Project run by the University of the South Pacific, Fiji(Cumming et al. 2000). The records from Suva Barrier Reef show that temperaturesexceeded the maximum monthly mean (MMM) of 28.5 °C for five months, remained above29 °C for 3.5 months and peaked at 30-30.5 °C between early March and early April. Similarpatterns and peak temperatures were noted at Vuna Point, Taveuni, except that the MMMwas 0.3 °C lower.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 6

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008This in-situ logger network has subsequently been expanded by the Fijian branch of theGlobal Coral Reef Monitoring Network (Sykes 2007). By December 2006, sea temperaturewas being monitored in nine regions (Coral Coast, Savusavu, Suva, Somosomo Straits, EastTavenui, Yasawa Island, Namena, Kadavu and Vatu-i-Ra). An additional logger wasinstalled in Beqa Lagoon, near Storm Island in January 2007. Data from January 1997 toNovember 2007 were obtained from a logger facing the ocean at a depth of 5-7 m on MountMutiny, a pinnacle, in Vatu-i-Ra Passage (Figure 4). During this period the temperaturevaried from approximately 24.0 °C (September/October 1997) to just over 30 °C (February2002). It is also evident that the minimum water temperature in 1997 was well below thatexperienced in any of the other years and that the minimum temperatures in 1998, 2002-2005were below those in 1999-2001 and 2006-2007. An analysis carried out on data from January1999 to May 2006 indicated that the number of days per year with temperatures in excess of29 °C varied from < 20 in 1999 and 2003 to > 80 in 2000 and 2002 (Sykes 2007).Temperature data from the loggers deployed at Yasawa Island, Vatu-i-Ra, Kadavu and SuvaHarbour over the period September 2006 to October 2007 have also been compared (Figure5) (Helen Sykes pers. comm.). The overall trend was similar across the four locations,however, peak temperatures were clearly maintained over a longer period (January to April)at Yasawa and Vatu-i-Ra than at Suva and Yasawa Island (February to April). Thetemperature at Yasawa Island was generally greater while that at Kadavu was smaller thanat the other locations. From December to April, temperatures in excess of 29 °C wererelatively common at Yasawa Island, but of rare occurrence at the other locations.The SEAFRAME gauge installed at Lautoka on the western side of Viti Levu in October 1992indicates that sea temperatures since then have varied from a minimum of 24.2 °C in August1993 to a maximum of 32.5 °C in April 2006 (Bureau of Meteorology, Australia 2006b).2.3.3.4 French PolynesiaIn French Polynesia, the sea temperature varies from 20-22 °C in winter and from 26-30 °C insummer (Wells and Jenkins 1988). In this region, sea temperatures decrease southward andeastward to Rapa, where the minimum temperature suitable for growth of coral is found. Inthe Gambier Archipelago, the sea temperature varies from about 22 °C in August to 26 °C inMarch.2.3.3.5 Papua New GuineaA water temperature probe deployed on the eastern side of Lion Island in Bootless Bay,Papua New Guinea between August 1998 and February 2000 indicated that watertemperature ranged from 25.55 °C (September 1999) to 30.85 °C (February 2000) (Quinn andKojis 2000). Sea temperatures recorded during a rapid assessment of marine biodiversity inMilne Bay Province ranged from approximately 26 °C to 30 °C, with the northern section ofMilne Bay experiencing warmer temperatures (28-30 °C) than the southern section (26-28 °C)(Allen et al. 2003). The highest temperatures were recorded at Fergusson Island, AmphlettsGroup, and Cape Vogel and the lowest temperatures in the western part of the CalvadosChain.The SEAFRAME gauge installed at Lombrum on Manus Island in September 1994 indicatesthat sea temperatures since then have varied from a minimum of 27.8 °C in September 1997and April 1998 to a maximum of 32.6 °C in November 2000 (Bureau of Meteorology,Australia 2006c). The SEAFRAME records also show that mean water temperatures offManus Island were about 2 °C below normal during the 1997/1998 El Niño.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 7

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20082.3.3.6 Solomon IslandsIn the Solomon Islands, sea surface temperatures are consistently in the upper 20s (Sulu et al.2000). The temperature is generally coolest between August and October and warmerbetween January and March. On some occasions, mean monthly sea temperatures in excessof 29.5 °C have been recorded for 4 or 5 consecutive months. Ramofafia et al.(2001) notedthat the mean monthly seawater temperatures recorded daily at the ICLARM CoastalAquaculture Centre at Aruligo to the west of Honiara, Guadalcanal over the period May1995 to December 1998 varied between 27.3 °C (September/October 1997) and 30.2 °C(February/March 1996).The SEAFRAME gauge installed at Honiara on the north-west coast of Guadalcanal in July1994 indicates that sea temperatures since then have varied from a minimum of 26.5 °C inOctober 1998 to a maximum of 31.9 °C in March 2000 (Bureau of Meteorology, Australia2006d). The SEAFRAME records also show that mean water temperatures off Honiara wereabout 2 °C below normal during the 1997/1998 El Niño.2.3.3.7 VanuatuAccording to Wells and Jenkins (1988), the water temperature in Vanuatu ranges from 24.5°C in September to 28.1 °C in February. The SEAFRAME gauge installed at Port Vila onEfate Island, however, indicates that sea temperatures since January 1993 have varied from aminimum of 23.3 °C in September 1994 to a maximum of 31.7 °C in February 2000 (Bureau ofMeteorology, Australia 2006e).2.4 SST Measurements Derived from SatellitesNumerous SST data products were considered, but only four contained composite data thatcould be easily accessed using a Personal Computer. These were the Modern AverageGlobal SST dataset produced by the US Geological Survey, the SST web atlas for the GreatBarrier Reef region produced by the Australian Institute of Marine Science and CRC ReefResearch Centre, the National Oceanic and Atmospheric Administration’s Coral Reef WatchProgram and the surface temperature search tool maintained by the Australian Departmentof Defence.2.4.1 Modern Average Global SST DatasetComparable SST data for various locations in the regions of interest were obtained from themodern average global sea-surface temperature dataset produced by the US GeologicalSurvey (Schweitzer 1993). These data are derived from weekly measurements taken by anAdvanced Very High Resolution Radiometer (AVHRR) from October 1981 to December1990 in nine separate regions of the world’s oceans. The dataset was obtained bydownloading the SST display application in format EXE Stand-alone runtime for MicrosoftWindows. This software package was used to view the monthly images for the South-eastand South-west Pacific oceans and extract estimates of the monthly SST data averagedacross the 10 year study period. It should be noted that averaging the images in this waytends to reduce the number of grid cells that lack valid data and suppresses inter-annualvariability. Data for the locations of interest were obtained by overlaying alatitude/longitude grid over the image and selecting the nearest pixel which contained SSTrecords. Data are presented for five locations distributed across the geographic extent ofmost of the South Pacific countries of interest (Figure 6). The dataset was less completearound the Solomons Islands and Vanuatu, so data for fewer locations are presented.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 8

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008Figure 6 shows that the variation in average monthly SST values was generally greater offthe Northern coast of Australia than in the South Pacific countries of interest. The maximumaverage monthly SST values in northern Australia, however, were similar to those recordedin Papua New Guinea and the Solomon Islands, but greater than those in the other Pacificcountries. The average monthly SST values were more similar among locations in theSolomon Islands than among locations in the other countries, probably because the formerhave a less extensive geographic distribution. In most countries, the average monthlytemperature declines with latitude. August was the coldest month of the year throughoutthe Cook Islands and Fiji, but only at some locations in French Polynesia, Papua NewGuinea, the Solomon Islands and Vanuatu. At the other locations, the minimum monthlySST values occurred either in July, throughout July and August, in September or throughoutAugust and September. The occurrence of the warmest month of the year was even morevariable, occurring in January, February, March or April or from November-February,January to February, February to March, February to April or March to April.2.4.2 Surface Temperature Search ToolSST data for some of the locations in northern Australia where pearls farms have beenestablished were obtained by using the web-based surface temperature search tool(Directorate of Oceanography and Meteorology, Department of Defence, Australia 2007).These data are predicted average monthly SSTs based on data within a 1° latitude andlongitude radius of a coastal town and do not therefore take into account localenvironmental factors. They are provided by the US Naval Oceanographic Office whoprocess AVHRR data from the polar operational environmental satellites NOAA-14 andNOAA-15 (Paul Sliogeris, pers. comm.). The data are calibrated against drifting buoymeasurements and represents a 10 day composite analysis of sea surface temperature.The mean monthly sea temperature ranges for these locations are:• Houtman Abrolhos Islands – 20.4 °C to 23.9 °C;• Carnarvon - 21.5 °C to 25.3 °C;• Broome - 23.4 °C to 29.0 °C;• Exmouth – 23.9 °C to 28.1 °C;• Dampier - 24.1 °C to 28.4 °C;• Coburg Peninsula - 26.5 °C to 30.0 °C;• Prince of Wales Island, Torres Strait - 26.7 °C to 29.2 °C; and• Hervey Bay – 21.3 °C to 26.3 °C.Figure 7a indicates that the minimum monthly temperatures and monthly maxima were notcoincident at the six locations on the north-west coast. The minimum temperaturesoccurred in August at Broome and the Coburg Peninsula, in September in the Houtman-Abrolhos Islands, but from August through to September at the other locations. Themaximum temperatures were recorded in January at Broome and the Coburg Peninsula, butin March at the Abrolhos Islands, Exmouth and Dampier and in April at Carnarvon. Thetrends at the two widely spaced locations on the north-east, however, were similar, exceptthat the maximum temperature was maintained over a three month period (January toMarch) at Prince of Wales Island, but for January only at Hervey Bay (Figure 7b).The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 9

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20082.4.3 SST web atlas for the Great Barrier ReefThe CRC Reef Research Centre in conjunction with the Australian Institute of MarineScience (AIMS) developed an SST web atlas for the Great Barrier Reef region based on theAVHRR satellite data archive with a spatial resolution of approximately 1 km (AIMS 2008).Sea temperature time series data for the period August 2003 to December 2007 wereobtained for one offshore (Swain Reef) and four inshore locations (Agincourt, Davies andHardy Reefs and Halftide) from the recently-developed sea surface temperature website(AIMS 2008). It should, however, be noted that this is an experimental facility and that theremay be significant errors in the data, because they have not been corrected for the effects ofundetected cloud and other aerosols. Figure 8 shows that the temperatures at theselocations are generally in excess of 20 °C and that at all five locations they sometimes exceed30 °C.2.4.4 NOAA’s Coral Reef Watch ProgramMonthly night-time sea surface temperatures derived from AVHRR measurements takenbetween December 2000 and October 2007 were also obtained for 50 km 2 pixels surroundingor close to Coburg Park, Scott Reef and Ningaloo Reef on the north-west coast of Australia,Davies Reef and Heron Island on the north-east coast of Australia, Beqa in Fiji and Mooreain Tahiti (NOAA 2007). The mean monthly sea temperature ranges obtained for theselocations were:• Coburg Park - 25.4 °C to 30.7 °C;• Scott Reef- 25.7 °C to 30.7 °C;• Ningaloo Reef - 22.9 °C to 29.2 °C;• Heron Island - 21.6 °C to 28.3 ºC;• Davies Reef - 23.0 °C to 29.3 °C;• Beqa - 24.4 °C to 29.7 °C; and• Moorea - 26.2 °C to 29.3 °C.Figure 9a shows that the minimum monthly temperatures occurred at more or less the sametime at Scott Reef and Coburg Park, but sometimes occurred one or two months later atNingaloo Reef. The monthly maxima also occurred later at Ningaloo Reef than at Scott Reefand Coburg Park. Trends in temperature were coincident at the two locations on the northeastcoast of Australia (i.e. at Heron Island and Davies Reef) (Figure 8b). At Beqa, the peaktemperatures occurred either in February, March or April, while troughs occurred either inAugust, August through to September, September or from September through to October(Figure 9). The peaks in temperature at Moorea were also not consistent across the surveyperiod (Figure 9). In most years, the temperature peaked in March, however, in 2002 it didso in April and in 2004 it peaked in January. The minimum temperature was generallyrecorded in September, but in 2003 it occurred in October and from 2004-2005, it spannedAugust and September.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 10

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20083.0 TROPICAL CYCLONES3.1 IntroductionTropical cyclones are non-frontal low pressure systems that form over warm tropical waters.They are characterised by organized convection, sustained gale force winds in excess of 63km/h and wind gusts greater than 90 km/h near their centre that persist for more than sixhours (Bureau of Meteorology, Australia 2007a). The gale force winds can extend more thanhalf way around the cyclone near their centre and can extend hundreds of kilometres fromthe cyclone centre. Tropical cyclones derive their energy from the ocean and form only whenthe following conditions are met:• the sea-surface temperature exceeds 26.5 °C and this temperature extends down to adepth of least 50 m;• the atmosphere cools fast enough to encourage thunderstorm activity;• there are relatively moist layers near the mid-troposphere (5 km);• there is sufficient Coriolis force (earth’s spin) to maintain the low pressure of thesystem;• there is a pre-existing disturbance near the surface with sufficient spin and inflow;and• low vertical wind shear (i.e. change in the wind with height that is less than 40 km/hfrom surface to tropopause).They do not occur within 5° north or south of the equator, because the Coriolis Force isweaker at these latitudes.Tropical cyclones vary in intensity, life cycle, pattern of movement, size and impact (wind,storm surge and flooding). They are assigned intensity categories ranging from 1 to 5 on thebasis of the average maximum wind speed, strongest gust and central pressure. Severetropical cyclones are characterized by sustained winds near the centre of 118 km/h andgusts in excess 165 km/h. Most tropical cyclones have a life-cycle of 3-7 days, but they canpersist for several weeks if they remain in a favourable atmospheric environment. Weakcyclones, in contrast, only reach gale force for a brief period of time. These low pressuresystems usually dissipate over land or colder oceans.The activity and intensity of tropical cyclones varies within seasons, between years, decadesand over multi-decadal timescales. In the Australian/Southwest Pacific basin (east of142°E), tropical cyclone activity generally begins in late October/early November, reaches asingle peak in late February/early March, and then fades out in early May (AtlanticOceanography and Meteorological Laboratory 2007). Between 1968 and 1989/1990, the totalnumber of tropical cyclones that occurred in this basin per year varied from 2 in 1981 to 16in 1971 while the number of severe cyclones varied from 1 in 1979 to 11 in 1971 (Neumann1993). The variation in number of cyclones from year to year is correlated strongly withlocal sea surface temperature before and at the start of the cyclone season, particularly withthose in October (Nicholls 1984). The El Niño-Southern Oscillation (ENSO) phenomenonalso affects the number of cyclones that occur per year. During El Niño events, there is apronounced shift back and forth of cyclone activity with fewer tropical cyclones occurringbetween 145°E and 165°E and more across the South Pacific east of 165°E. There is also aThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 11

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008tendency for tropical cyclones to originate a little closer to the equator. During La Niñaevents, the opposite pattern is observed.3.2 Exposure of Key Pacific Regions to Tropical Cyclone ActivityThe South Pacific region (east of 160°) generally experiences fewer tropical cyclones than theAustralian region. Between the 1970/1971 and 2003/2004 seasons, the South Pacificexperienced 8.6 cyclones on average per season, 4.1 of which were classified as severe and1.7 as intense (McInerney et al. 2006). During this period, the South Pacific region wasexposed to tropical cyclones for 31.7 days on average and to severe cyclones on 10.9 days. Inthe Australian region (90°E - 160°E), there were, on average, 12.8 cyclones per season, 6.3 ofwhich were classified as severe (i.e. had maximum wind speeds > 33 m/sec) and 2.5 asintense (i.e. had maximum wind speeds in excess of 44 m/sec. The Australian region wasexposed to tropical cyclones for 50 days on average and to severe cyclones on 15 days.The spatial patterns of occurrence of tropical cyclones in the South-West Pacific Oceanacross latitudes 10º and 22º S between 1969/1970 and 1988/1989 and their dependency onthe Southern Oscillation phenomenon and sea surface temperatures was initially describedby Basher and Zheng (1985). For this report, more up-to-date information on the averageannual occurrence of tropical cyclones and average annual numbers during El Niño, LaNiña and neutral years in the different regions has been obtained by accessing the southernhemisphere tropical cyclone archive (Bureau of Meteorology, Australia, 2007b). This archiveis based on a 2 x 2 degree resolution gridded analysis of cyclone best track data for theperiod 1969/70 to 1998/99. The map showing the average distribution of tropical cyclonesacross the southern hemisphere over this period shows that cyclone activity is greatestbetween latitudes 10° and 20° S, extends over a greater latitudinal range in the South Pacificthan in the Indian Ocean and that numbers decrease from west to east across the southwestPacific (Figure 10). The latter trend reflects the progressive west-east decline in the oceansurfacetemperature to the west of 170° E (Terry 2007). An area to the north of Port Hedlandon the northwest coast of Australia is the most prone to tropical cyclones, experiencing onesuch event per year on average (Bureau of Meteorology, Australia, 2007b). Three other “hotspots”of cyclone activity are evident in the South West Pacific region, two of which arelocated in the Coral Sea between longitudes 148° and 151°E, 156° and 158° E, respectivelywhile the third is to the west to Vanuatu and New Caledonia (between about 163° and 166°E). The latter region experiences 0.8 cyclones per season on average. Figure 10 implies thatthe incidence of cyclones is, on average, greatest around Vanuatu, followed in turn by Fiji,the Cook Islands, French Polynesia and the Solomon Islands. In widespread nations, such asFrench Polynesia, the risk of cyclones varies across the archipelagos, averaging one percentury to the north of the Marquesas, 1-3 per century from the Marquesas to the region tothe north of the Tuamotu group, 4-8 per century from the Tuamoto group to the Gambiersand one every 2-3 years in the Austral areas (Gabriel and Salvat 1985 in Wells and Jenkins1988).During El Niño years, there is a marked shift in the regional pattern of risk with cycloneactivity extending further east towards longitude 120° W, being greater than on average inthe vicinity of Vanuatu, Fiji, the Cook Islands and French Polynesia, of similar incidence inthe Solomon Islands but less frequent off the north Australian coast (Bureau of Meteorology,Australia, 2007b) (Figure 11). During La Niña events, the risk of cyclone activity does notextend beyond longitude 150° W, cyclones are more common than on average in the vicinityof Vanuatu, New Caledonia and South Coral Sea (Figure 12). The incidence of cyclones alsoshows a north-south shift, with activity extending further south during El Niño than LaThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 12

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008Niña events. Basher and Zheng (1995) noted that cyclones were more common at latitudesgreater than 19º S during La Niña events, but most common between latitudes 12º S and 23ºS during strong El Niño events. They also estimated that the risk to the Southwest Pacificregion as a whole was 28% greater than average during El Niño events.NIWA (1997) estimated the annual chance of a cyclone occurring within 100 km 2 of the mainisland groups based on data averaged across the period 1969/1970 and 1988/1989. The riskwas estimated to be 60%, 50%, 30%, 15% and 10% for Vanuatu, Fiji, Southern Cook Islands,French Polynesia and the Solomon islands, respectively. During strong El Niño events, theyindicated that the risk of cyclones increased to 75% for the Southern Cook Islands and 50%for French Polynesia, but remained at 50% for Fiji, declined to 40% for Vanuatu and wasconsidered negligible for the Solomon Islands. The average number of tropical cyclones peryear passing within 550 km (5°) of the major island groups in the South Pacific has also beenestimated (Salinger et al. 2007). The estimates are 3.0 for Vanuatu, 2.3 for Fiji, 1.5 for thesouthern Cook Islands, 1.3 for the Solomon Islands, 0.8 for the Northern Cook Islands, 0.8-0.1 for the major archipelagos in French Polynesia, and 0.6 for Papua New Guinea. Theyalso point out that on average about four cyclones per season have wind speeds in excess of118 km/h (category 4) and two of these usually reach category 5 status with mean windspeeds greater than 167 km/h.The total number of tropical cyclones that passed within 50, 100 and 200 km of variouslocations within the specified regions between1969/1970 and 2004/2005 was estimated byexamining the tracks in the southern hemisphere tropical cyclone archive compiled by theNational Climate Centre, Bureau of Meteorology, Australia (Bureau of Meteorology 2007c)(Table 1). During this period, fewer tropical cyclones passed within 50 km and 100 km ofBroome and Exmouth on the north-west Australian coast than most of the locations inVanuatu and some of those in Fiji. More tropical cyclones passed within 200 km of theVanuatu coast, than both the Fijian and north-west Australian coast. Table 1 also suggeststhat the risk of a tropical cyclone passing varies within individual countries. In Fiji, forexample, seven tropical cyclones passed within 50 km of Viwa, but only one passed nearLakeba, Matuku and Suva. Likewise in Vanuatu, nine tropical cyclones passed within 50 kmof Aneityum, Lamap, Port Vila and Sola, but only five did so near Pekoa Airport.The north-west coast of Australia between Exmouth Gulf and Broome has the highestincidence of tropical cyclones in the southern hemisphere (Bureau of Meteorology, 2008).This region is also the most prone to severe tropical cyclones. About five tropical cyclones,on average, form each season over the warm ocean waters off the northwest coast betweenlongitudes 105°E and 125°E. Only two of these usually cross the coast and only one of theseis severe. Broome has experienced 22 tropical cyclones since 1910. This is equivalent toabout one every four years, however, the frequency has declined in recent decades, withonly two cyclones occurring between 1990 and 2004 (Bureau of Meteorology 2007d). In theExmouth area, tropical cyclones with wind gusts greater than 90 km/h occur about onceevery two to three years on average, but only three gale-causing cyclones have occurredsince 1982 (Bureau of Meteorology 2007e). In the Northern Territory, there are on average7.7 days of cyclone activity per season (Bureau of Meteorology 2007f). The Gulf ofCarpentaria usually averages two cyclones a year, while the Arafura and Timor Seasaverage one per year. On the east coast of Australia, there are on average 4.7 tropicalcyclones per year.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 13

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20083.3 The Influence of Climate Change on Tropical CyclonesThe effects of global warming on the characteristics and behaviour of tropical cyclones alsoneed to be considered. On a global scale, there is considerable uncertainty about theinfluence of global warming on cyclone frequency, but a general acceptance that tropicalcyclone intensities will increase. The latest report on climate change in Australia indicatesthat there is likely to be an increase in the proportion of the tropical cyclones in the moreintense categories, but a possible decrease in the total number of cyclones (CSIRO 2007). Thecomputer modelling studies undertaken by Walsh et al. (2004) and Leslie et al. (2007) suggestthat there will be no significant change in the number of tropical cyclones off the east coastof Australia to the middle of the 21 st Century. The simulations made by Abbs et al. (2006),however, indicate that there will be a significant decrease in numbers of cyclones,particularly off the west coast. All three studies agree that there will be a marked increase inthe frequency of severe tropical cyclones. The projections made by Abbs et al. (2006) andLeslie et al. (2007) suggest that cyclones will be more long-lived on the east coast. Abbs et al.(2006) indicate that there will also be a decline in long-lived cyclones off the west coast.In the South Pacific region, global warming is predicted to have some or all of the followingeffects on tropical cyclone activity:• Change the origin of cyclones so that there is less clustering and more spreading to theeast than at present;• Little change in total cyclone numbers or frequencies, but more storminess east oflongitude 180°;• Increase in the intensity of tropical cyclones, with lower central pressure and greatermaximum wind speeds;• Greater precipitation;• Longer cyclone lifespans;• More southerly trend in cyclone tracks; and• Longer cyclone tracks with greater southward movement prior to decay (Terry 2007).3.4 Impact of Tropical Cyclones3.4.1 General ImpactsThe gale force winds accompanying cyclones can cause extensive property damage, turnairborne debris into potentially lethal missiles, and produce heavy seas which are dangerousto vessels at sea and in harbours and cause serious erosion of foreshores (Bureau ofMeteorology, Australia 2007a). The heavy rainfall that occurs as the cyclone passes over canproduce extensive flooding which can in turn cause damage. Heavy rain can persist as thecyclone moves into central and southern parts of Australia and cause flooding inland. Themost potentially destructive phenomena associated with tropical cyclones are storm surges,raised domes of water about 60 to 80 km across and 2 to 5 m higher than the normal tidelevel. If the arrival of a storm surge coincides with a high tide it can cause extensiveinundation of the coast, particularly in low-lying areas.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 14

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20083.4.2 Impact on the Physical Environment of Key Pacific Island GroupsThe impact of tropical cyclones on the physical environment of Pacific Island groupsdepends on their frequency, intensity, speed of movement, longevity, size and proximity tothe island groups and how the physical features of the affected islands influence theirresponse to the geomorphic and hydrological processes triggered by the cyclone (Terry2007). Low-lying coral islands, such as those on atolls, are the most vulnerable to impacts.These islands consist of unconsolidated heaps of coralline sands and gravel on top of reeffoundations and are prone to overtopping by storm surge and wave action generated bycyclones. On mountainous volcanic islands, characterized by rugged topography andweathered clay soils, heavy cyclonic rainfall can result in landslides on hills and depositionof sediment in valley bottoms. Tropical cyclones usually have less impact on limestoneislands, because these have no significant relief on which slope failures can occur and nosurface drainage channels that can be flooded.3.4.3 Impacts on Pearl Fishing and FarmingIn November 1910, a cyclone, with winds estimated at 175 km/h caused 34 pearling boats tobe wrecked or sunk and a further 67 boats to be blown ashore in the Broome region,northwest Australia (Bureau of Meteorology, Australia 2007c). In March 1935, a cyclonedevastated the pearling fleet at the Lacepede Islands, caused the deaths of 141 people anddemolished pearling camps in Broome. In March 1989, the storm surge accompanyingCyclone Mahina destroyed the pearling fleet and killed 400 people at Bathurst Bay, nearCape Melville, Queensland (Emergency Management, Australia 2003). In Exmouth Gulf,Western Australia, cyclone-induced damage to benthic habitat has led to fluctuations in theavailability of wild stock and reductions in landings by the fishery (Department of Fisheries,Western Australia 2002). The heavy rainfall (395 mm), high winds (with gusts up to 273km/h) and storm surge that accompanied category 5 cyclone Vance in March 1999, causedwidespread movement of pearl oysters and equipment on experimental lines andcommercial oyster farms in Exmouth Gulf (Hart and Joll 2006). In April 2000, CycloneRosita caused wide-scale damage to pearling facilities and the loss of eight boats in thevicinity of Broome. Paspaley pearls estimated that the losses to the Broome pearlingindustry amounted to about A$6 million (Department of Primary Industries, WesternAustralia 2002). Cyclone-induced movements of sand and silt can impact on pearl oysterbanks by smothering brood stock and recruits. In the early stages of this fishery, cyclonesled to loss of human life and boats.Aquaculture installations situated within the cyclone belt may also be subject to episodicdamage by storm surges and strong winds. The reduction in number and total area of pearlfarms in Manihiki Atoll, Cook Islands that occurred between 1997 and 1999 has beenattributed to the impact of Cyclone Martin in 1997 (Ponia et al. 2000). Although damage tounderwater farming operations was limited, this cyclone caused the loss of harvested pearlsand equipment, damage to the above-water infrastructure and villages and loss of 19 lives(Macpherson 2000). Within a two month period in 1983, French Polynesia was hit by fivecyclones; more than in the previous 150 years. The attendant 4-5 m rise in sea level and 8-10m high waves resulted in the total submergence of many villages on the atolls, anddestroyed boats, fishing equipment and pearl aquaculture rafts (UNESCAP 2000).The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 15

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20084.0 CONCLUSIONS4.1 Sea TemperatureAlthough sea temperature is known to influence the physiology of cultured oysters and therate of deposition of nacre on oyster shells and implanted nuclei, surprisingly littleinformation is available about the optimum temperature ranges of black-lip and silver-lipoysters. The only information that is available comes from north-east Australia andindicates that the range for black-lip oysters (23 – 28 °C) is narrower than that for silver-lipoysters (23 – 32 °C) (Yukihira et al. 2000). It should be noted that optimum temperatureranges at other locations may differ, particularly if there are latitudinal differences in thesespecies. Information about the sea temperatures prevailing at culture sites in Australia andthe South West Pacific is also fairly limited. In French Polynesia, the temperatures reportedat black pearl farms range from 21.3 - 28.8 °C, 25.5 - 29.5 °C and 26 – 31 °C, depending onlatitude (Pouvreau and Prasil 2001). In north-west Australia, temperatures reported at silverpearl farms range from 19.5 - 29.7 °C, 21.4 - 30.9 °C and 25 – 32 °C (Pass et al. 1987; CSIRO2003). This implies that black pearl farms are either located in areas where the watertemperature is outside the optimum temperature range or that the optimum ranges of thisspecies in other countries differs markedly from that in north-east Australia. Likewise, someof the Western Australian silver pearl farms are located in areas where the minimum watertemperature is below the lower limit of the optimum temperature range or where themaximum water temperature is close to the upper limit of the optimum range. It shouldalso be noted that if global warming causes a 0.4 - 1.0 ºC increase in the sea temperature offthe north-west coast of Australia by 2030 as predicted by CSIRO (2007), this could result inprevailing temperatures at some farm locations exceeding the optimum temperature rangeof silver-lip oysters.This review has shown that in-situ sea temperature measurements derived from underwaterprobes are available for numerous other locations in Australia, particularly those adjacent tothe Great Barrier Reef on the north-east coast, but relatively little data of this type isavailable from the South Pacific nations of interest. Sea surface temperature measurementsderived indirectly from data collected by infra-red radiometers carried on board satellitesare available for locations throughout the world. If the spatial resolution of these data is toocoarse, they will be of limited value to offshore pearl companies. SST products that providemeasures of variability within months and years would also be more useful to prospectivepearl farmers than average monthly climatologies, because they provide an indication ofextreme SSTs that regions may experience and their likely duration. It should also be notedthat SST measurements derived from satellite-borne sensors tend to be somewhat lower thanthe SSTs of waters immediately overlying coral reefs (Strong et al. 1996).The limited information that is available on sea temperatures in Solomon Islands indicatesthat the prevailing regimes are similar to those in some areas of the Cook Islands and FrenchPolynesia, where there are productive black-lip pearl farms. The temperature regime in theSolomon Islands is also similar to that in some areas of Vanuatu, Fiji and Papua NewGuinea. The average monthly SST measurements indicate that the temperature of the waterat locations in the Solomon Islands and Papua New Guinea regularly exceeds 29 °C insummer. This implies that these regions may be more suitable for culturing silver-lip thanblack-lip pearl oysters. The temperature regimes at most of the locations in Fiji andVanuatu, however, appear to be suitable for culturing both species of pearl oysters. Itshould, however, be noted that there are no natural populations of silver-lip pearl oysters inThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 16

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008these waters. On the basis of our current knowledge, it is not possible to say whether the seatemperature regime in Solomon Islands would be more advantageous for pearl farming thanthat in the other South Pacific nations considered.4.2 Risk of Damage to Pearl Farms from Tropical CyclonesAs the South Pacific region (east of 160°) usually experiences fewer tropical cyclones thanthe Australian region, the risk of damage to pearl farms and associated infrastructure is alsolikely to be smaller. The risk of cyclone damage also differs across the South Pacific region,being 60%, 50%, 30%, 15% and 10% for Vanuatu, Fiji, southern Cook Islands, FrenchPolynesia and the Solomon Islands, respectively (NIWA 1997). It is, however, important tonote that in a widespread nation, such as French Polynesia, the risk of cyclones varies acrossthe archipelagos and that the risk of cyclones within the Australian/South-West PacificBasin also depends on the ENSO phenomenon. For example, during El Niño years, the riskof cyclones in the Southern Cook Islands and French Polynesia increases to 75% and 50%,respectively, remains at 50% in Fiji, but decreases to 40% in Vanuatu and 10% in theSolomon Islands. The risk of tropical cyclones also declines in the Australian region(Nicholls 1984).If the strength or frequency of El Niño events increases, as is predicted with global warming,the easterly shift in tropical cyclone activity in the South Pacific region is likely to becomethe norm rather than an occasional event. Tropical cyclones are also expected to persist forlonger and travel further south before they lose energy and decay. The low-lying nature ofmany of the islands in the Cook Islands and French Polynesia means that they arevulnerable not only to overtopping by storm surges and extreme wave action generated bycyclones, but also to sea-level rise associated with global warming. The pearl farmindustries in the Cook Islands and French Polynesia are both known to have been adverselyimpacted by cyclones in recent decades (Ponia et al. 2000; UNESCAP 2000). In the future,they are likely to be impacted not only by cyclone activity, but also by sea-level rise.Although impacts from cyclones are periodic, it may be wise to establish new pearl farms innations, where the risk of damage from natural disasters and climate change is smaller.Whilst cyclones are less frequent in Solomon Islands than in most pearl farming areas, it isnot possible, on the basis of our current knowledge, to determine whether pearl farmingwould be more advantageous there than in other South Pacific nations.Due consideration should also be given to ways of avoiding or minimizing damage to pearlfarms. The development of better advance cyclone warning systems, for example, couldenable farmers to move longlines into deeper water and bring portable equipment ashorebefore weather and sea conditions deteriorate. It may also be possible to cyclone proof subsurfacefarm infrastructure by using better attachments or “bunching up” longlines on thelagoon floor to reduce impacts from surges.4.3 Overall ConclusionsIn the South Pacific region, the identification of potential culture sites for black-lip andsilver-pearl pearl oysters is currently hindered by the lack of information on latitudinaldifferences in their optimal temperature ranges and the general lack of easily-accessibleinformation on prevailing sea temperatures. Whilst sea temperature and cyclone frequencyare important, they are only two of a range of environmental factors that could influenceproduction of pearl oysters. The identification of potential culture sites should also be basedon a sound knowledge of fluctuations in a number of other environmental parameters,The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 17

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008particularly food and silt levels, plus an appreciation of the vulnerability of different areas toother environmental hazards, particularly earthquakes, tsunamis, sea-level rise, volcaniceruptions and large-scale pollution events. As a number of variables operating over spatialscales ranging from regional to site-specific determine the suitability of a location for pearlfarming, it is impossible, given our current state of knowledge, to say whether any onevariable confers a significant advantage or disadvantage for a particular location.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 18

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20085.0 ACKNOWLEDGEMENTSThis report was written by Dr Theresa Dye and reviewed by Drs Marcus Lincoln Smith. Thefollowing people assisted by providing information and we are most grateful for their help:Dr Helen Sykes, Research Support, Suva, Fiji;Dr Robert Smith, Pacific Islands Applied Geoscience Commission (SOPAC);Paul Sliogeris, METOC Geospatial Services, Directorate of Oceanography & Meteorology,Royal Australian Navy.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 19

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 20086.0 REFERENCESAbbs, D.J., Aryal, S., Campbell, E., McGregor, J. Nguyen, K., Palmer, M., Rafter, T.,Watterson, I. and Bates, B. (2006). Projections of Extreme Rainfall and Cyclones. A reportto the Australian Greenhouse Office, Canberra, Australia. pp. 97.AIMS (2003). Remote data stations. WEATHER. Station summaries index.http://www.aims.gov.au/pages/facilities/weatherstations/summaries/summaries-index.htmlAIMS (2008). AIMS SST Web Atlas.http://138.7.120.8:9555/sstatlas/do/gotoSearchImage.doAllen, G.R., Kinch, J.P., McKenna, S.A. and Seeto, P. (ed.s) (2003). A Rapid MarineBiodiversity Assessment of Milne Bay Province, Papua New Guinea—Survey II(2000). RAP Bulletin of Biological Assessment No. 29. Conservation International,Washington, DC, USA.Atlantic Oceanography and Meteorological Laboratory (2007). Hurricane Research Division.Frequently Asked Questions Subject: G2) How does El Niño-Southern Oscillationaffect tropical cyclone activity around the globe?Basher, R.E. and Zheng, X. (1995). Tropical cyclones in the southwest Pacific: spatialpatterns and relationships to Southern Oscillation and sea surface temperature.Journal of Climate 8 pp. 1249-1260.Buestel, D., Pouvreau, S., Tiapari, J., Bougrier S., Chabirand, J.M., Geairon, P. andFougerouse, A. (1995). Écophysiologie de l’huître perlière: Approche des relationsentre la croissance de l’huître Pinctada margaritifera et le milieu dans le lagon deTakapoto. Rapport IFREMER, RIDRV 95-18 RA, Tahiti, 79 pp.Bureau of Meteorology, Australian Government (2006a). Pacific Country Report Sea Level& Climate: Their Present State Cook Islands.http://www.bom.gov.au/ntc/IDO60021/IDO60021.2006.pdfBureau of Meteorology, Australian Government (2006b). Pacific Country Report: Sea Level& Climate: Their Present State Fiji.http://www.bom.gov.au/ntc/IDO60023/IDO60023.2006.pdfBureau of Meteorology, Australian Government (2006c). Pacific Country Report: Sea Level& Climate: Their Present State Papua New Guinea.http://www.bom.gov.au/ntc/IDO60029/IDO60029.2006.pdfBureau of Meteorology, Australian Government (2006d). Pacific Country Report: Sea Level& Climate: Their Present State Solomon Islands.http://www.bom.gov.au/ntc/IDO60031/IDO60031.2006.pdfBureau of Meteorology, Australian Government (2006e). Pacific Country Report: Sea Level& Climate: Their Present State Vanuatu.http://www.bom.gov.au/ntc/IDO60029/IDO60029.2006.pdfBureau of Meteorology, Australian Government (2007a). About Tropical Cyclones.http://www.bom.gov.au/weather/cyclone/about/about-tropical-cyclones.shtmlBureau of Meteorology, Australian Government (2007b). Average annual number oftropical cyclones – all years.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 20

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008http://www.bom.gov.au/cgi-bin/climate/cgi_bin_scripts/tropical_cyclone.cgi. Accessed29 October 2007.Bureau of Meteorology, Australian Government (2007c). Tropical Cyclone Information forSouthern Hemisphere. http://www.bom.gov.au/cgi-bin/silo/cyclones_sh.cgiBureau of Meteorology, Australian Government (2007d). Tropical Cyclones AffectingBroome.http://www.bom.gov.au/weather/wa/cyclone/about/broome/index.shtmlAccessed 30 October 2007.Bureau of Meteorology, Australian Government (2007e). Tropical Cyclones AffectingExmouth.http://www.bom.gov.au/weather/wa/cyclone/about/exmouth/index.shtmlAccessed 30 October 2007.Bureau of Meteorology, Australian Government (2007f). Tropical Cyclones in the NorthernTerritory. http://www.bom.gov.au/weather/wa/cyclone/about/cyclonesnorthern.shtmlAccessed 30 October 2007.Bureau of Meteorology, Australian Government (2008a). Tropical Cyclones in WesternAustralia - Climatologyhttp://www.bom.gov.au/weather/wa/cyclone/about/climatology.shtmlCSIRO (2007). Climate change in Australia. Technical Report 2007. Chapter 5: Regionalclimate change projections (sea level, marine projections, severe weather, ENSO, theSouthern Annular Mode and storm tracks)http://www.climatechangeinaustralia.gov.au/resources.phpCSIRO Marine Research (2003). Coastal Ocean Temperatures off WA.http://www.cmar.csiro.au/remotesensing/AlanPearce/regional/temp.htmlCumming, R.L., Toscano, M.A., Lovell, E.R., Carlson, B.A., Dulvy, N.K., Hughes, A., KovenJ.F., Quinn, N.J., Sykes, H.R., Taylor, O.J.S. and Vaughan, D. (2000). Mass coralbleaching in the Fiji Islands, 2000. In: Proceedings 9 th International Coral ReefSymposium Bali, Indonesia 23-27 October 2000 Vol. 2: pp. 1161-1167. (eds.) Moosa,M.K., S. Soemodihardjo, A. Soegiarto, K. Romimohtarto, A. Nontji, Soekarno andSuharsono.Department of Primary Industries, Western Australia (2002). Broome Boat Harbour SiteSelection Report.http://www.dpi.wa.gov.au/imarine/coastal_fac/pdf/broome/Broome-Report.pdf.Directorate of Oceanography and Meteorology, Department of Defence, Australia (2007).Surface Temperature Search Tool.http://www.metoc.gov.au/products/data/aussst.phpDoroudi, M.S., Southgate, P.C. and Mayer, R.J. (1999). The combined effects of temperatureand salinity on embryos and larvae of the black-lip pearl oyster, Pinctada margaritifera(L.). Aquaculture Research 30: pp. 271-277.Emergency Management Australia (2003). EMA Schools. Categories – Cyclones.http://www.ema.gov.au/agd/ema/emaschools.nsf/Page/RWPCA72DA4EF61B6FD0CA256C5C00829C23?OpenDocumentGervis, M.H. and Sims, N.A. (1992). The biology and culture of pearl oysters (Bivalvia:Pteriidae). ICLARM Studies and Reviews 21: pp. 49.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 21

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008Hart, A.M. and Joll, L.M. (2006). Growth, mortality, recruitment and sex-ratios in wildstocks of silver-lipped pearl oyster Pinctada maxima (Jameson) (Mollusca: Pteriidae),in Western Australia. Journal of Shellfish Research 25: pp. 201-210.Hynd, J.S. (1955). A revision of Australian pearl shells, genus Pinctada (Lamellibranchia).Australian Journal of Marine and Freshwater Research 6: pp. 98-137.Jones, D.S. (2004). The Burrup Peninsula and Dampier Archipelago, Western Australia: anintroduction to the history of its discovery and study, marine habitats and their floraand fauna. Records of the Western Australian Museum Supplement No. 66: pp. 27–49.Leslie, L.M., Karoly, D.J., Leplastrier, M. and Buckley, B.W. (2007). Variability of tropicalcyclones over the Southwest Pacific Ocean using a high resolution climate model.Meteorology and Atmospheric Physics 97: pp. 171-180.Macpherson, C. (2000). Oasis or mirage: the farming of black pearls in the northern CookIslands. Pacific Studies 23 pp.33-55.McInerney, R., Farlow, J., Henry, E., Lynch, B., Shepherd, I., Smith, T. and Cleland, S.J.(2006). Australian Meteorology Magazine 55: pp. 313-323.McKenzie, E. (2004). A cost-benefit analysis of projects implemented to assist the black pearlindustry in Manihiki Lagoon, Cook Islands. SOPAC Technical Report 371 pp. 57.Metoffice UK (undated). Sea surface temperatures for climate.http://www.metoffice.gov.uk/research/nwp/satellite/infrared/sst/sst_climate.htmlNASA Jet Propulsion Laboratory (2007). Sea surface temperature products.http://podaac.jpl.nasa.gov maintained by the NASA JPL Physical OceanographyDAAC, Pasadena, CA.NASA Oceanography (2005). Sea surface temperature.http://science.hq.nasa.gov/oceans/physical/SST.html Viewed 30 November 2007.National Atlas of the United States (2007). Article. What is AVHRR? http://wwwatlas.usgs.gov/articles/mapping/a_avhrr.html#two.Viewed 29 November 2007Neumann, C.J. (1993): "Global Overview" - Chapter 1" Global Guide to Tropical CycloneForecasting, WMO/TC-No. 560, Report No. TCP-31, World MeteorologicalOrganization; Geneva, SwitzerlandNicholls, N. (1984). The Southern Oscillation, sea-surface temperature and interannualfluctuations in Australian tropical cyclone activity. Journal of Climatology 4: pp. 661-670.NIWA (1997). Press release. 27 November 1997 El Niño predicted to cause more frequenttropical cyclones in South Pacific.http://www.soest.hawaii.edu/MET/Enso/peu/update.dir/NIWA-TCPR.htmlNOAA Coastal Services Centre (undated). Sea surface temperature. What is sea surfacetemperature? http://www.csc.noaa.gov/crs/cohab/hurricane/sst.htmNOAA (2007). NOAA Coral Reef Watch. SST/DHW Time Series and Satellite BleachingAlerts. http://coralreefwatch.noaa.gov/satellite/current/sst_series_24reefs.htmlPass, D.A., Dybdahl, R. and Mannion, M.M. (1987) Investigations into the causes ofmortality of the pearl oyster, Pinctada maxima (Jamson), in Western Australia.Aquaculture 65: pp.149-169.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 22

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008Ponia, B. Napara, T., Ellis, M. and Tuteru, R. (2000). Manihiki Atoll black pearl farm censusand mapping survey. SPC Pearl Oyster Information Bulletin # 14.Pouvreau, S., Tiapari, J., Gangnery, A., Lagarde, F., Garnier, M., Teissier, H., Haumani, G.,Buestel, D. and Bodoy, A. (2000a). Growth of the black-lip pearl oyster, Pinctadamargaritifera, in suspended culture under hydrobiological conditions of Takapotolagoon (French Polynesia). Aquaculture 184: pp. 133-154.Pouvreau, S., Bacher, C. and Héral, M. (2000b). Ecophysiological model of growth andreproduction of the black pearl oyster, Pinctada margaritifera: potential applicationsfor pearl farming in French Polynesia. Aquaculture 186: pp. 117-144.Pouvreau, S. and Prasil, V. (2001). Growth of the black-lip pearl oyster, Pinctadamargaritifera, at nine culture sites of French Polynesia: synthesis of several samplingdesigns conducted between 1994 and 1999.Quinn, N.J. and Kojis, B.L. (2000). Abundance and diversity of coral populations. In: TheStatus of Coral Reefs in Papua New Guinea (ed.) Munday, P. L. Global Coral ReefMonitoring Network, pp. 5-12.Ramofafia, C., Byrne, M. and Battaglene, S. (2001). Reproductive biology of the intertidal seacucumber Actinopyga mauritiana in the Solomon Islands. Journal of the MarineBiological Association U.K. 81 pp. 523-531.Reddy, M.P.M. (2001). Descriptive Physical Oceanography. Taylor and Francis. pp. 440.Reed, W. (1966). Cultivation of the black-lip pearl oyster Pinctada margaritifera (L.). Journal ofConchology 26: pp. 26-32.Rougerie, F. (1985) Nature et fonctionnement des atolls des Tuamotu (Polynésie Frangaise).Oceanologica Acta 18: pp.61-78Salinger, J., Burgess, S. and Renwick, J. (2007). The Island Climate Update. 85; pp. 6.http://www.niwa.cri.nz/__data/assets/pdf_file/0005/58712/icu-2007-10.pdfSchweitzer, Peter N., 1993, Modern Average Global Sea-Surface Temperature: U.S.Geological Survey Digital Data Series DDS-10, U.S. Geological Survey, Reston,VirginiaStrong, A.E., Barrientos, C.S., Duda, C. and Sapper, J. (1996). Improved satellite techniquesfor monitoring coral reef bleaching. In: Proceedings of the International Coral ReefSociety Symposium (Panama, 1996).Sugiyama, A. and Tomori, A. (1988). Oxygen consumption of black-lip pearl oyster. SuisanZoshoku 36: pp. 121-125.Sulu, R. Hay, C. Ramohia, P. and Lam, M. (2000). The status of Solomon Islands coral reefs.Global Coral Reef Monitoring Network (GCRMN) Report.Sykes, H. (2007). Status of Coral Reefs In The Fiji Islands, 2006. Part 1: Reef Health acrossthe Fiji Islands.Terry, J.P. (2007). Tropical Cyclones. Climatology and Impacts in the South Pacific. SpringerScience + Business Media, LLC. pp. 210.UNESCAP (2000). Review of the state of the environment of the Pacific Islands. Ministerialconference on environment and development in Asia and the Pacific. Kitakyushu,Japan 31 August-5 September 2000. http://www.unescap.org/mced2000/so1.htmThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 23

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008Walsh, K.J.E., Nguyen, K.C. and McGregor, J.L. (2004). Finer-resolution regional climatemodel simulations of the impact of climate change on tropical cyclones nearAustralia. Climate Dynamics 22: pp. 47-56.Wells, S.M. and Jenkins, M.D. (1988). – Coral reefs of the world, volume 3: Central and WesternPacific. United Nations Environment Programme (UNEP) Regional Seas Directoriesand Bibliographies. International Union for Conservation of Nature and NaturalResources (IUCN), Gland, Switzerland and Cambridge, UK/ UNEP, Nairobi, andRobertson.Kenya, xlix + 329 p. + 30 maps.Yukihira, H., Lucas, J.S. and Klumpp, D.W. and Lucas, J.S. (2000). Comparative effects oftemperature on suspension feeding and energy budgets of the pearl oysters Pinctadamargaritifera and P. maxima. Marine Ecology Progress Series 195: pp. 179-188.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 24

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008TABLESTable 1. Average number of tropical cyclones passing within 50, 100 and 200 km of selectedlocations in Australia, Cook Islands, Fiji, French Polynesia, Papua New Guinea, SolomonIslands and Vanuatu between 1969/1970 and 2004/2005.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 25

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl FarmingTable 1. Total number of tropical cyclones passing within 50, 100 and 200 km of selected locations in Australia,Cook Islands, Fiji, French Polynesia, Papua New Guinea, Solomon Islands and Vanuatu between1969/1970 and2004/2005. Source: Bureau of Meteorology, Australia (2007b).Country Location Latitude Longitude Number of cyclones within(°S) (° E or W) 50 km 100 km 200 kmAustralia Broome 17.94 122.23 E 6 12 28Australia Exmouth 19.24 146.76 E 6 11 30Australia Cairns 16.87 145.74 E 6 10 24Cook Islands Penrhyn 9.00 158.50 W 1 1 4Cook Islands Rarotonga 21.11 159.80 W 5 7 23Fiji Labasa Airfield 16.47 179.34 E 2 12 26Fiji Lakeba 18.24 178.81 E 1 9 26Fiji Matuku 19.13 179.74 E 1 10 27Fiji Nabouwalu 16.99 178.69 E 2 8 27Fiji Nadi 17.76 177.44 E 2 13 28Fiji Oni I Lau 20.66 178.72 E 5 18 23Fiji Rotuma 12.51 177.54 E 2 11 19Fiji Suva 18.15 178.45 E 1 9 29Fiji Vanua Balavu 17.25 178.95 E 3 5 25Fiji Viwa 17.15 176.91 E 7 13 28Fiji Vunisea 19.67 178.17 E 4 18 25Fiji Yasawa-i-Rawa 16.70 177.57 E 5 15 31French Polynesia Tahiti 19.00 210.00 E 0 4 11Papua New Guinea Kavieng 2.58 150.80 E 0 0 0Papua New Guinea Madang 5.22 145.78 E 0 0 0Papua New Guinea Port Moresby 9.45 147.20 E 0 1 3Solomons Islands Honiara 9.40 159.97 E 1 5 11Solomons Islands Lata 10.70 165.80 E 0 3 10Solomons Islands Munda 8.33 157.27 E 0 1 7Solomons Islands Taro Island 6.70 156.40 E 0 1 6Vanuatu Aneityum 20.23 169.78 E 9 15 34Vanuatu Lamap 16.42 167.81E 9 18 41Vanuatu Pekoa Airport 15.50 167.22 E 5 14 43Vanuatu Port Vila 17.75 168.31 E 9 21 39Vanuatu Sola 13.87 167.55 E 9 16 32

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming Final, June 2008FIGURESFigure 1. Mean monthly sea surface temperatures derived from the hourly data collected byoceanographic monitoring buoys deployed in Manihiki and Penrhyn Lagoons, NorthernCook Islands.Figure 2. Mean monthly coastal ocean temperatures recorded by probes deployed at (a)silver-lip pearl oyster farms in Roebuck Bay and Exmouth Gulf and (b) at Barrow Island,Osprey Bay and Shark Bay, Western Australia.Figure 3. Mean monthly sea surface temperature records from weather stations atAgincourt, Davies, Hardy and Myrmidon reefs on the Great Barrier Reef, north-east coast ofAustralia.Figure 4. Variation in sea temperature records from an in-situ logger deployed at a depth of5-7m on Mount Mutiny, Vatu-i-Ra, Fiji for the period January 1997 to November 2007.Figure 5. Comparison of sea temperatures recorded by in-situ loggers deployed at YasawaIsland, Vatu-i-Ra, Kadavu and Suva Harbour over the period September 2006 to October2007.Figure 6. Average monthly sea surface temperatures derived from AVHRR sensormeasurements taken between October 1981 and December 1990 for various locations in (a)Northern Australia, (b) Cook Islands, (c) Fiji, (d) French Polynesia, (e) Papua New Guinea,(f) Solomon Islands and (g) Vanuatu.Figure 7. Mean monthly sea surface temperature records derived from AVHRRmeasurements for various locations on (a) the north-west coast and (b) the north-east ofAustralia where pearl farms have been established.Figure 8. SST time series data derived from satellite-borne AVHRR sensor measurementstaken over (a) Agincourt Reef, (b) Davies Reef, (c) Hardy Reef, (d) Halftide and (e) SwainReef, North-east Queensland between August 2003 and December 2007.Figure 9. Mean monthly sea surface temperature records from NOAA Coral Reef Watch for(a) Ningaloo Reef, Scott Reef and Coburg Park on the north-west coast, (b) for Heron Islandand Davies Reef on the north-east coast of Australia and (c) Beqa, Fiji and Moorea, Tahiti inthe South Pacific.Figure 10. Distribution map showing the average annual number of tropical cyclones in thesouthern hemisphere per season between 1969/1970 and 1998/1999.Figure 11. Distribution map showing the average annual number of tropical cyclones in thesouthern hemisphere during El Niño years between 1969/1970 and 1998/1999.Figure 12. Distribution map showing the average annual number of tropical cyclones in thesouthern hemisphere during La Niña years between 1969/1970 and 1998/1999.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 27

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32Temperature °C3028ManihikiPenrhyn26N D J F M A M J J A S O N D J2003 2004 2005Month/YearFigure 1. Mean monthly sea surface temperatures derived from the hourly datacollected by oceanographic monitoring buoys deployed in Manihiki and PenrhynLagoons, Northern Cook Islands. Source: SOPAC.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32(a) Pearl FarmsRoebuck Bay 12 mTemperature °C282420Exmouth Gulf 1 m16JanFeb Mar Apr May Jun July Aug Sep Oct Nov DecMonth32(b) Other LocationsTemperature °C282420Barrow 0 mBarrow 15 mOsprey Bay 5 mShark Bay16JanFeb Mar Apr May Jun July Aug Sep Oct Nov DecMonthFigure 2. Mean monthly coastal ocean temperatures recorded by probes deployed at(a) silver-lip pearl oyster farms in Roebuck Bay and Exmouth Gulf and (b) at BarrowIsland, Osprey Bay and Shark Bay, Western Australia. Source: CSIRO MarineResearch (2003).The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32Agincourt ReefMyrmidon ReefTemperature °C2824Davies ReefHardy Reef20Jan Feb Mar Apr May Jun July Aug Sep Oct Nov DecMonthFigure 3. Mean monthly sea surface temperature records from weather stations atAgincourt, Davies, Hardy and Myrmidon reefs on the Great Barrier Reef, north-eastcoast of Australia. Source: AIMS (2003)The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl FarmingTemperature °CFigure 4. Variation in sea temperature records from an in-situ logger deployed at a depthof 5-7m on Mount Mutiny, Vatu-i-Ra, Fiji for the period January 1997 to November 2007.Source: Sykes (2007)The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl FarmingFigure 5. Comparison of sea temperatures recorded by in-situ loggers deployed atYasawa Island, Vatu-i-Ra, Kadavu and Suva Harbour over the period September 2006 toOctober 2007. Source: Sykes (pers. comm.)The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32(a) North-west AustraliaTemperature °C Temperature °C30282624222018323028262422J F M A M J J A S O N D(b) North-east AustraliaBroome(17.8° S, 122.3° E)Dampier(20.7° S, 116.5° E)Exmouth(21.9° S, 114° E)Carnarvon(24.9º S, 113.5º E)Houtman Abrolhos(28.7º S, 113.8º E)Croker Island(11.1° S, 132.6° E)Agincourt Reef(16.1° S, 145.5° E)Hervey Bay(25º S, 153º E)2018Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecFigure 6. Average monthly sea surface temperatures derived from AVHRR sensormeasurements taken between October 1981 and December 1990 for various locations in(a) North-west Australia, (b) North-east Australia, (c) Cook Islands, (d) Fiji, (e) FrenchPolynesia, (f) Papua New Guinea, (g) Solomon Islands and (h) Vanuatu. Source:Schweitzer (1993).The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32(c) Cook IslandsTemperature °C Temperature °C30282624222018323028262422Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec(d) Fiji)MonthPenrhyn (8.9° S, 157.9° W)Suwarrow (13.4°S, 162.9° W)Palmerston (18° S, 163°W)Rarotonga (21.2°S, 160° W)Mangaia (21.9°S, 157.8° W)Rotuma (12.2° S, 177.3° E)VanauLevu(16.4º S, 179º E)Lau Group (17.8º S, 179º E)Kadavu (19.1º S, 178º E)2018Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMonthFigure 6 continued.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32(e) French PolynesiaTemperature °C3028262422Marquesas (8.9° S, 139.3° W)Society Is. (17.5° S, 149.5° W)Tuamotus (18.1° S, 141.2° W)Gambier Is. (23.3° S, 134.6° W)Bass Is. (27.5° S, 144.1° E)2018Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMonth3230(f) Papua New GuineaNew Britain(5.7° S, 151.6° E)Manus Is.(2° S, 146.5° E)New Ireland(3.1° S, 152° E)Temperature °C28262422Port Moresby(9.6° S, 147° E)Louisiade Is.(11.2° S, 153.2° E)2018Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMonthFigure 6 continued.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming(g) Solomon Islands3230Santa Isabel(8° S, 159.7° E)Shortland Islands(6.9° S, 155.8° E)Temperature °C Temperature °C282624222018323028262422Guadalcanal(9.6° S, 160.8 E)Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec(h) VanuatuEspritu Santo(15.6º S, 166.7º E)Efate(17.8º S, 168.5º E)MonthSan Cristobal(10.4° S, 161.9° E)Torres Is.(13.3º S, 166.7º E)Tanna(19.4º S, 169º E)2018Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecMonthFigure 6 continued.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32(a) North-west coastCoburg PeninsulaTemperature °C Temperature °C2824201632.0028.8025.6022.40Jan Feb Mar AprMay Jun July Aug Sep Oct Nov Dec(b) North-east coastMonthBroomeDampierExmouthCarnarvonHoutman AbrolhosIslandsPrince of Wales IslandTorres StraitHervey Bay19.2016.00Jan Feb Mar AprMay Jun July Aug Sep Oct Nov DecMonthFigure 7. Mean monthly sea surface temperature records for various locations on (a)the north-west coast and (b) the north-east of Australia where pearl farms have beenestablished. Source: Sea Surface Temperature Tool, Directorate of Oceanography andMeteorology, Department of Defence, Australia.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming35(a) Agincourt Reef302520151035(b) Davies Reef30Temperature °C2520151035(c) Hardy Reef3025201510TimeFigure 8. SST time series data derived from satellite-borne AVHRR sensor measurementstaken over (a) Agincourt Reef, (b) Davies Reef, (c) Hardy Reef, (d) Halftide and (e) SwainReef, North-east Queensland between August 2003 and December 2007. Source: AIMS(2008).The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming35(d) Halftide302520Temperature °C15103530(e) Swain Reef25201510TimeFigure 8 continued.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32(a) North-west AustraliaTemperature °C2824Scott ReefCoburg ParkNingaloo Reef20J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J SF A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A OMonth/Year32(b) North-east AustraliaTemperature °C2824Davies ReefHeron Island20J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J SF A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A OFigure 9. Mean monthly sea surface temperature records from NOAA Coral ReefWatch for (a) Ningaloo Reef, Scott Reef and Coburg Park in north-west Australia, (b)Heron Island and Davies Reef in north-east Australia and (c) Beqa in Fiji and Mooreain Tahiti.The Ecology Lab Pty Ltd - Marine and Freshwater StudiesMonth/Year

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl Farming32(c) South PacificTemperature °C292623Beqa, FijiMoorea, Tahiti20J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J SF A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A OMonth/YearFigure 9 continued.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl FarmingLatitudeLongitudeFigure 10. Distribution map showing the average annual number of tropical cyclones in the southern hemisphere per season between1969/1970 and 1998/1999. Source: Bureau of Meteorology, Australian Government.The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl FarmingLatitudeLongitudeFigure 11. Distribution map showing the average annual number of tropical cyclones in the southern hemisphere during El Niño yearsbetween 1969/1970 and 1998/1999. Source: Bureau of Meteorology, Australian Government.The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Water Temperature and Cyclone Frequency in the Pacific: Implications for Pearl FarmingLatitudeLongitudeFigure 12. Distribution map showing the average annual number of tropical cyclones in the southern hemisphere during La Niña yearsbetween 1969/1970 and 1998/1999. Source: Bureau of Meteorology, Australian Government.The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Report to:WorldFish CenterAbundance, Size Structure and Quality ofSilver-lip Pearl Oysters in the Solomon IslandsFINALJune 2008

Abundance, Size Structure and Quality ofSilver-lip Pearl Oysters in the Solomon IslandsJune 2008Report Prepared for:WorldFish CenterJalan Batu MaungBatu Maung,11960 Bayan Lepas,Penang,MalaysiaReport Prepared by:The Ecology Lab Pty Ltd4 Green StreetBrookvale, NSW, 2100Phone: (02) 9907 4440Report Number – 55/0607AReport Status – Final 4 June 2008© This document and the research reported in it are copyright. Apart from fair dealings for the purposes ofprivate study, research, criticism or review, as permitted under the Copyright Act 1968, no part may bereproduced by any process without written authorisation. Direct all inquiries to the Director, The Ecology LabPty Ltd at the above address.

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008The Ecology Lab Pty Ltd – Marine and Freshwater StudiesTABLE OF CONTENTSSummary ................................................................................................................................................i1.0 Introduction ....................................................................................................................................11.1 Background and Aims...............................................................................................................11.2 Existing Information..................................................................................................................21.2.1 History of Exploitation.......................................................................................................21.2.2 Pearl Oyster Cultivation.....................................................................................................31.2.3 Previous Surveys of Pearl Oyster Stocks .........................................................................32.0 Study Methods ..............................................................................................................................52.1 Preliminary Investigations and Site Selection.......................................................................52.1.1 Pre-Survey Visit to Island Communities ........................................................................52.1.2 Current Exploitation..........................................................................................................52.1.3 Site Selection .......................................................................................................................52.2 Underwater Visual Census......................................................................................................62.3 Remote Video Census...............................................................................................................62.4 Statistical Methods....................................................................................................................72.5 Estimates of Population Size ...................................................................................................73.0 Results..............................................................................................................................................83.1 Recent and Ongoing Exploitation of Pearl Oysters..............................................................83.1.1. Recent and Ongoing Exploitation....................................................................................83.1.2 Current Distribution ..........................................................................................................83.2 Underwater Visual Census......................................................................................................93.2.1 Abundance ..........................................................................................................................93.2.2 Population Size Structure..................................................................................................93.2.3 Quality and Colour of shell and nacre ............................................................................93.3 Remote Video Census.............................................................................................................103.4 Estimates of Population Size .................................................................................................104.0 Discussion ....................................................................................................................................125.0 Conclusions..................................................................................................................................156.0 Acknowledgements ....................................................................................................................167.0 References ....................................................................................................................................17Tables ...................................................................................................................................................20Figures .................................................................................................................................................24Plates....................................................................................................................................................36Appendices .........................................................................................................................................40

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008SUMMARYThe European Union has funded a project entitled ‘Stimulating investment in pearl farmingin the Solomon Islands’. The objective of this project is to provide offshore pearl companieswith sufficient information to determine the potential for long-term investment in pearlfarming in the Solomon Islands. The WorldFish Centre sub-contracted The Ecology Lab Ptyto:• participate in underwater visual census and remote video census of the majorhistorical fishing grounds for silver-lip pearl oysters (Pinctada maxima) in theSolomon Islands;• analyse data from these surveys and calculate the abundance of silver-lip pearloyster stocks, the number of sustainable quotas of silver-lip pearl oysters that couldbe allocated for pearl farming and the proportion of oysters at each site with thepreferred silver nacre; and• prepare a report describing the results of the surveys and analyses performed.Divers equipped with surface-supplied compressed air (hookah) conducted visual censusesof silver-lip oyster stocks on eight historical fishing grounds: Malaita, Marau Sound, MboliPassage, Sandfly Passage, Telina Island, Kia and Waghina. These censuses were based on ahierarchical sampling design with four randomly-positioned transects being swum at threeseparate sites within each location. Individual sites with these locations were based oninterviews with fishers who had previously taken part in commercial pearl collection. Basedon those interviews, all locations had and still do support silver-lip pearl oysters, butexploitation was best developed at Kia and Waghina.Silver-lip pearl oysters were found on 33 of the 96 transects surveyed, yielding a total of 117oysters. Waghina, Kia and Mboli Passage (Narula Passage) had the largest populations,with mean densities of 1.23 ± 0.38, 1.03 ± 0.27 and 0.66 ± 0.27 pearl oysters per 400m 2transect. Pearl oysters were not found at Mbili Passage and Telina and were scarce (i.e. hadan average density of

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008overgrown by other biota. The maximum average number of “possible” live oysters foundper transect was one, suggesting that these animals are also scarce at depths of 35-50m.The low densities of silver-lip oysters observed in the underwater and remote visualcensuses suggest that stocks have not recovered to sustainable levels since fishing wasprohibited in 1994. The lack of small animals suggests that recruitment may haveconsistently failed during this period.As pearl oysters change from male to female as they age, most of the oysters found duringthe current and previous surveys undertaken in the Solomon Islands are likely to have beenfemale. The current assumed bias in the sex ratio may be partly responsible for a reductionin reproductive output and resulted in impaired, if not total recruitment failure.If historical over-exploitation has led to poor recruitment, recovery of the populations islikely to remain either be very slow or non-existent. It should be noted that some of theblack-lip pearl oyster stocks in the Cook Islands and French Polynesia, subjected to intensefishing during the late nineteenth and early twentieth centuries, had not recovered fromover-exploitation by the 1980s. The fact that stocks in the Waghina region of the SolomonIslands have been subjected to three phases of exploitation suggests that some degree ofrecovery of fished stocks has occurred in the past. An alternative explanation for thisphasing is that changes in fishing method over that period have enabled divers to accessstocks in progressively deeper water.In conclusion, exploitation of silver-lip pearl oysters for pearl culture is not an ecologicallyor commercially viable option at present, because of the paucity of the stocks andunfavourable size of the majority of oysters. If the silver-lip pearl oyster stocks in theSolomon Islands do eventually recover from the last phase of commercial exploitation,management strategies that protect the recovered population will need to be implemented toprevent overfishing prior to any further exploitation.The Ecology Lab Pty Ltd – Marine and Freshwater StudiesPage ii

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20081.0 INTRODUCTION1.1 Background and AimsPearl oysters are highly valuable commodities that are either fished or farmed throughoutthe Indo-Pacific region for their shells, pearls and meat. This resource has proved to be avaluable source of employment and export income for small, less-developed countries,particularly French Polynesia and the Cook Islands. In French Polynesia, the productionand value of pearl oysters increased from 575 metric tons and US$37.77 million in 1990 to apeak of 11,364 metric tons and US$158.78 million in 2000 (SPC 2007). In the Cook Islands,the value of pearl oyster production over the same time period increased from NZ$4.9million to NZ$18.4 million. At the peak of production, approximately 7000 and 450 peoplewere employed in the industry in French Polynesia and the Cook Islands, respectively.Although production of pearl oysters in these regions has subsequently declined, the mostrecent figures indicate that production in the Cook Islands was valued at NZ$3.2 Million in2004 and that from French Polynesia had a value of US$126.5 million in 2005. In the CookIslands and French Polynesia, production is based entirely on cultivated black pearl(Pinctada margaritifera) stocks. Small-scale production of black pearl oysters also occurs inSolomon Islands, Fiji Islands, Marshall Islands, Tonga and the Federated States ofMicronesia (SPC 2002). Silver-lip pearl oysters (Pinctada maxima), also known as white-lip orgold-lip pearl oyster) are farmed in Australia and Papua New Guinea, but not in the SouthPacific.The European Union has recently funded a project entitled ‘Stimulating investment in pearlfarming in Solomon Islands’. The primary objective of this project is to provide offshorepearl companies with sufficient information to determine the potential for long-terminvestment in pearl farming in Solomon Islands. Information on the following aspects iscurrently being compiled for this project:• Publications on the availability and culture of black-lip pearl oysters in Solomon Islands;• Availability and quality of silver-lip pearl oyster resources in Solomon Islands;• Availability of suitable habitats and environmental conditions for the growth of black-lipand silver-lip pearl oysters in Solomon Islands and pearl-producing regions of the SouthPacific;• The investment climate in the Solomon Islands;• Policy guidelines for the development of environmentally and financially sustainablepearl farming in the Solomon Islands; and• Offshore pearl companies most likely to consider investing in pearl farming in SolomonIslands.In February 2007, The WorldFish Center commissioned The Ecology Lab Pty Ltd to providevarious consultancy services for the EU project including:• Assist WorldFish staff conduct interviews with coastal communities to identify andmap the historical major fishing grounds for silver-lip pearl oysters in SolomonIslands;The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 1

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008• Collaborate with WorldFish staff to develop sampling designs to obtain precise andaccurate estimates of the density and size structure of silver-lip pearl oysters at up to10 sites throughout Solomon Islands;• Participate in underwater surveys at selected sites to obtain estimates of abundance,and sub-sample the oysters there to estimate size structure and nacre colour;• Analyse data from the UVC and video surveys, and the sub-sampled oysters, at allsites to calculate:1) the abundance of silver-lip pearl oyster stocks at each site, and across all sites,2) the number of sustainable quotas of silver-lip pearl oysters that could beallocated for pearl farming within and across all sites, and3) the proportion of oysters at each site with the preferred silver nacre.• Prepare a report on the abundance, size structure and variation in nacre colour ofsilver-lip pearl oysters in Solomon Islands, and the recommended number ofsustainable fishing quotas that could be allocated for pearl farming based on datacollected at all sites; and• Prepare a manuscript for the Journal of Shellfish Research on the abundance, sizestructure and variation in nacre colour of silver-lip pearl oysters in Solomon Islandsbased on the UVC and video data, and sub-sampling, at all sites.This report focuses on the abundance, size structure and variation in nacre colour of silverlippearl oysters in Solomon Islands, and the recommended number of sustainable fishingquotas that could be allocated for pearl farming based on data collected at all sites.1.2 Existing Information1.2.1 History of ExploitationNatural pearl oyster populations in Solomon Islands have been exploited for at least twocenturies (Colgan 1993). Three species: silver-lip (Pinctada maxima), black-lip (Pinctadamargaritifera) and brown-lip pearl oysters (Pteria penguin) were exploited commercially forthe nacre or mother–of–pearl (MOP) in their shells. The MOP was initially exportedunprocessed to Japan, however, in 1990 button factories were established in Honiara(Richards et al. 1994).Small-scale commercial exploitation of gold-lip pearl oyster began in 1916 and was carriedout by Japanese hard hat divers based at Aratoba Island near Waghina until 1922 (Gauld1975 in Colgan 1993). In 1968, the fishery at Aratoba Island was re-opened by the Palmerfamily based on Gizo. Fishing was done by hookah divers and Hamilton Channel,Waghina, Kia, Rob Roy Channel and Popu Passage were the major areas fished. A largesilver-lip pearl oyster bed was also found at Ngella, but was decimated soon after by adisease outbreak (Gauld 1975 in Colgan 1993). Silver-lip pearl oysters were also found inMarau Sound. Attempts were also made to collect spat, but only black-lip pearl spat settledout.At the peak of its operation, the Solomon Islands Mother of Pearl Company formed bythe Palmer family employed 22 divers. The fishery was terminated in 1972 because ofdeclining stocks resulting from overfishing, increased operational costs and a decline inMOP prices on world markets. In 1987, a pearl fishery employing divers of I-Kiribati origincommenced operations at Waghina (Colgan 1993). In 1994, the export of wild-caught blacklipand silver-lip pearl oysters was banned due to overexploitation (Kile 2000). In theThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 2

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008decade prior to this, the annual exports of black-lip and silver-lip pearl shell varied between15 and 44 tonnes and between 6 and 25 tonnes, respectively (Richard et al. 1994). The exportstatistics provided to the Solomons Islands Fisheries Division by MOP traders in Honiaraindicate that most of the pearl shell exported came from the Waghina area (Colgan 1993).1.2.2 Pearl Oyster CultivationThere have also been several attempts to establish a pearl culture industry. The Palmerfamily, assisted by Stan Hynd, a CSIRO scientist, cultured pearls between 1968 and 1972, butceased production due to problems with spat collection and breeding techniques (SPC 2002).In 1994, the International Centre for Living Aquatic Resource Management (ICLARM nowthe WorldFish Center) and the Fisheries Division of the Solomon Islands Government (nowthe Ministry for Fisheries and Marine Resources) commenced a large-scale black-lippedpearl oyster spat collection programme with a view to investigating pearl culture. The studyinvolved the assessment of spatial and temporal variation in abundance of spat settling onartificial collectors deployed at 24 sites spanning 500 km of ‘open’ reef systems in theSolomon Islands (Friedman et al. 1998). This study showed that wild black-lip oyster spatcollected in ‘open’ reef systems could form the basis of a culture industry, provided thatpredation can be controlled. The growth and survival of juveniles has also been assessed inlantern nets suspended from longlines at depths of 3-4 m at nine shallow water sitesthroughout the Solomon Islands and at depths of 9-12 m and 35-45 m within an area of theGizo Lagoon (Friedman and Southgate 1999).In 1996/1997, the WorldFish Center in collaboration with the Australian Centre forInternational Agricultural Research and the Solomon Islands’ government initiated aprogram to culture high-quality black pearls in a sustainable manner in the Solomon Islands.A pilot farm was established near Gizo in the Western Province of the islands. The first cropof cultured pearls from the farm was auctioned for more than US$29,000 in September 2000and the second crop auctioned in June 2004 raised over US$18,000 (WorldFish Center 2007).A report has recently been produced on past research and development on black-lip pearloysters in Solomon Islands (Hawes and Messia 2007).1.2.3 Previous Surveys of Pearl Oyster StocksIn 1988, potential silver-lip pearl oyster resources in the Santa Isabel region were surveyedby three divers employed by Solomon Taiyo Ltd. A total of 49 silver-lip oysters were foundover the two week survey with the majority coming from Kia and Port Praslin Passage.Most of these oysters were considered unsuitable for farming, because they were larger than200 mm DVM (Nichols 1988 in Colgan 1993). In 1990, a six-day long survey conducted offKia by two divers yielded 46 silver-lip oysters, most of which were again too large for pearlculture (Batty and Kile in Colgan 1993). In December 1990, a week-long survey of pearloyster grounds at three depths targeted by commercial divers was carried out primarily inthe Waghina area, but with two additional dives at Kia (Colgan 1993). The substratum andconspicuous benthic organisms found at each site were also noted. Only two oysters werefound in the Waghina area at depths of 34-36 m and 28-31 m respectively, whereas tenindividuals were found at Kia at depths between 39 m and 51m. These stock levelsindicated that, at the time, there was no potential for commercial fishing or pearl culture inthe Waghina area. Suitable habitat for silver-lip pearl oysters in the form of “gardenbottom” characterised by sponges, soft corals and whip corals was fairly common, beingrecorded at approximately half the sites sampled at Waghina.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 3

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008In 1993, ICLARM and the Solomon Islands Fisheries Division surveyed the abundance ofblack-lip pearl oysters around population centres on Guadalcanal, Malaita, Florida Islands,Russell Islands, New Georgia and Gizo and interviewed local villagers about the status ofthe stocks (Richards et al. 1994). The maximum abundance observed was 12 oysters perdiver hour, but most encounter rates were in the order of 2-3 oysters per diver hour. Theinterviewees claimed that oyster stocks had declined considerably over the previous tenyears.In June 2004, The Nature Conservancy and Department of Fisheries and Marine Resourcesof the Solomon Islands Government conducted a “broad-brush” assessment of commerciallyimportant species, including pearl oysters, in the main archipelago. Sixty-six sites,stretching from Choiseul and Shortland Islands in the northwest to the Three Sisters and SanCristobal in the southeast, were surveyed over a 6 day period. Thirty-five sites were locatedin coral reef habitats on parts of islands exposed to direct wind and wave action. The othersites were generally in sheltered lagoons and bays. At most sites, both shallow (5-10 mdeep) and deep (18-30 m) habitats were surveyed. In the shallow habitat, six 50 m long x 2m wide transects laid over the terrace or slope in shallow habitats were surveyed per site. Inthe deep habitat, five 50 m long x 5 m wide transects laid parallel to the reef crest and oversoft sediments or rubble were surveyed per site.Black-lip (Pinctada margaritifera) and brown-lip (Pteria penguin) pearl oysters were collectedin shallow and deep habitats and at sheltered and exposed locations, but no silver-lip pearloysters were found. Black-lip pearl oysters were found in 36.4% of the shallow habitats and4.8% of the deep habitats surveyed, whereas brown-lip pearl oysters were found in only6.1% of the shallow habitats and 12.7% of the deep habitats surveyed. In the shallow habitat,similar total numbers of black-lip (39) and brown-lip (41) pearl oysters were found.However, in the deep habitat, brown-lip pearl oysters (40) were an order of magnitude moreabundant than black-lip oysters (4). Black-lip oysters were equally abundant in shelteredand exposed locations, but brown-lip oysters were more abundant in sheltered locations.The respective average densities (no./ha) of black lip and brown-lip oysters was 9 and 11 inshallow habitats and 0.4 and 4 in deep habitats. In the shallow habitat, the mean number ofblack-lip oysters per transect was two-three times greater in Mbili Passage in MarovoLagoon (Western Province), Falabulu Island in Langalanga Lagoon (Malaita) and Gavutu inNgella (between Malaita and Guadalcanal) than at the other sites. Most of the black-lipoysters found in this habitat were large animals, with a DVM > 12 cm. The greatest densityof brown-lip oysters was found at Airasia in Are’ Are Lagoon.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 4

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20082.0 STUDY METHODS2.1 Preliminary Investigations and Site Selection2.1.1 Pre-Survey Visit to Island CommunitiesAn essential part of the study was a visit to communities, selected on the basis of theirlocation in relation to previous exploitation of silver-lip pearl oysters. All sites were visitedat least two weeks before the main survey took place. At each community, meetings wereheld to inform people of the study, to ask permission to work in customary waters and toconduct interviews regarding historical distribution of pearl oysters, likely currentdistribution (and, hence prospective sampling sites) and occurrence of any recent or ongoingexploitation. During each interview, the study team sought to have at least one personpresent who could speak/translate pidgeon and the local dialect. A questionnaire(Appendix 1) was used to structure the interviews and a minimum of five local people whoexpressed personal experience of pearl oyster fishing were interviewed. Where possible,scientists undertook brief dives at likely sites using snorkel and/or scuba.2.1.2 Current ExploitationIn order to assess the likelihood of stock recovery, it is essential to have some knowledge ofany recent or ongoing exploitation. This was addressed by interviews with localcommunities, as described above. In addition, project participants from Solomon IslandFisheries examined centralised records in Honiara for any evidence of seizures of pearloysters over the past five to ten years.2.1.3 Site SelectionEight major fishing grounds for silver-lip pearl oysters were identified during the course ofpreliminary interviews with coastal communities. Scientists also undertook brief dives atlikely sites using scuba and/or snorkel. The grounds selected were those included thefollowing:• Malaita Island, Kau (9°S 161°E);• Marau Sound (9° S 160°E) at the eastern end of Guadalcanal;• Mboli Passage (9°S 160°E) a narrow division between two small islands, Nggela Sule andNggele Pile (formerly part of the Florida Islands) situated between the major islands ofGuadalcanal and Malaita;• Sandfly Passage (8° 59.869’ S, 160° 6.059’E) which separates Mbokonumbela Island fromNggela Sule in the Florida Island Group;• Mbili Passage (8°40.574’S, 158° 11.534’E) an eastern entrance to Marovo Lagoon,including the area enclosed by Sanihulumu Island;• Telina Island (8°31.168’S, 158° 11.534’ E) in Marovo Lagoon off the northern coast ofVangunu Island;• Kia (7° 34’S, 158° 37’ E) at the western tip of Isabel Island; and• Waghina Island (7• 26'S, 157• 42' E) situated SE of Choiseul Island.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 5

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008The relative position of each location is shown in Figure 1. Malaita and Marau weresurveyed in April 2007, as were some transects at Mboli Passage (Narula Passage). SandflyPassage, Mbili Passage and Telina were surveyed in May 2007 and Kia and Waghina weresurveyed in October 2007. The sites selected for investigation within each location wereplaces that the interviewees reported as historically and/or currently most favourable forsilver-lip pearl oysters. A local fisher or fisheries officer accompanied the survey boat toassist with specific local knowledge and finding the recommended sites.2.2 Underwater Visual CensusAt each location, three sites were surveyed by pairs of divers towed very slowly beneath asmall outboard boat and supplied with air via hoses from a compressor in the boat(“hookah” system). Pearl oysters were collected by the divers from four randomlypositioned4 m wide transects. The latitude and longitude at the beginning and end of eachtransect, time and duration of the dive, maximum bottom depth and the type of substratafound along each transect were recorded (Appendix 1). Position and depth were taken froma Hummingbird 737 combination GPS/Echo sounder. Transects varied in length from 69 to725 m and in maximum depth from 12.4 to 40.5 m, with the average being 305 m long and27.3 m deep. It should be noted that these lengths are derived from straight lineinterpolations between transect start and finish points. As far as was possible divers weretowed in a straight line and we have assumed that each diver adhered to a 2 m widetransect.Oysters found by the divers were placed in mesh bags and returned to the boat. On thesurface, the length and width of each pearl oyster shell was measured to the nearestmillimetre using callipers and recorded. The quality of the shell exterior was assessedvisually as being either high grade, of suspect quality or unwanted. The criteria used in thisassessment were related to the Australian standard of B FAQ and C respectively (Hart andFriedman 2004). At each site up to ten, haphazardly selected shell were sacrificed to allowthe colour of the margin and centre of the nacreous layer to be assessed. Ten pearl oystersfrom three locations were taken at (Kia, Waghina and Mboli) but only five were collected atMarau, while only a single shell was available from Malaita. All of these shells werephotographed and have been archived at the Nusa Tupe Research Station of the WorldFishCenter.2.3 Remote Video CensusRemote video censuses were undertaken at Malaita (Kau), Marau, Sandfly Passage, Kia andWaghina. The system comprised a Deep Blue Pro II colour video camera mounted onto analuminium sled and connected to a Sony VRD-VC30 DVD recorder and a 45M068X LCDscreen. Two water-proof laser pointers were attached to the camera and aligned in parallel,160 mm apart. These spots were readily viewable under all lighting conditions and alloweddimensional calibration of the images. Tows were initially planned for 30 minutes, but atMalaita and Marau this was found to be optimistic. In practice a series of 10 minute towswas found to be most effective in allowing straight line navigation, minimum disruptionfrom encounters with irregular bottoms and ensuring data security. After Marau, weattempted to obtain three ten minute tows from each of three locations. Where possible wetargeted a depth range deeper than the dive tows, typically 40-50 m. At those locationswhere video treansects were made, the GPS co-ordinates (latitude and longitude), durationof tow, bottom time, depth range surveyed and length of each transect were noted(Appendix 2).The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 6

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008A number of operational problems were encountered during the censuses, including strongcurrents that exceeded optimal imaging speed, irregular terrain that resulted in snaggingand/or flipping of the camera and battery failure, the last of which resulted in the loss ofdata. Problems were also encountered when some of the video material from Malaita andSandfly Passage was transcribed onto DVD. Operating this complex electronic equipmentfrom a small boat was demanding when rain fell. The number of transects surveyed at eachlocation and the quality of the images consequently varied markedly (Appendix 2).On return to Australia, DVDs were viewed on a computer screen using the softwarepackage Power-DVD. The quality of the video material varied, with some sections beingeither difficult or impossible to analyse, because the camera had been towed too fast or hadbeen positioned too high above the substratum or the water was silty and visibility waspoor. The types of substrata observed along each transect were recorded and any organismsresembling pearl oysters were counted and measured. Measurements were taken relative tothe 160 mm distance between the two laser spots projected from the camera, when thesewere visible.2.4 Statistical MethodsThe survey was designed so that nested analyses of variance could be used to assess thesignificance of variation in the density of silver-lip pearl oysters among and within fishinggrounds. Due to the absence of pearl oysters on some fishing grounds and their scarcity atothers, these analyses were restricted to Mboli Passage, Kia and Waghina, where pearloysters were relatively abundant. In these analyses, location was considered a fixed factor,whereas sites and transects were random factors. These analyses were based on densities ofoysters per 400 m 2 transect (i.e. they were standardised to compensate for differences in thelength of transect surveyed). Data were checked for homogeneity of variances usingCochran’s C Test prior to doing the nested ANOVA. Student Newman Keuls (SNK) testswere used to identify which levels of significant factors differed. Further details of theseanalytical procedures are available in Underwood (1997). One-way analysis of variance wasused to compare the mean lengths of oysters among the three locations.2.5 Estimates of Population SizeThe size of the silver-lip oyster populations at Kia, Mboli Passage and Waghina, the fishinggrounds with the most abundant stocks, were estimated as follows:1. First, raw counts per transect were corrected for sampling error on this type of seafloor by multiplying by 2.7. This is based on the assumption that collecting efficiencyduring the survey was similar to that for Australian divers working over similarhabitats (i.e. 37%) (Hart and Friedman 2004), in practice the efficiency of the diversused, who were inexperienced in pearl survey my have been less than this resultingin an underestimate of abundance;2. Second, corrected counts per 400 m 2 transect were multiplied by 25 to give estimatesper hectare; and3. Finally, densities per hectare were multiplied by estimates of the total habitat areaavailable at each locality derived from MaxSea digital bathymetric charts.These calculations were based solely on the density estimates derived from underwatervisual census, because of the uncertainty about the identification of oysters on the remotevideo censuses.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 7

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20083.0 RESULTS3.1 Recent and Ongoing Exploitation of Pearl OystersThe results of the interviews undertaken with island communities are summarised inAppendix 3. The key information obtained from each community about recent and ongoingexploitation and the current distribution of silver-lip oysters is outlined below.3.1.1. Recent and Ongoing ExploitationThe respondents indicated that small amounts of shell are still collected at Marau, MboliPassage, Sandfly Passage and Maramasike (Malaita). These are used locally as jewelleryand/or shell money. They also mentioned that there is a local market for oyster shell atMaramasike (Malaita) and that some of the divers at Kia are collecting silver-lip oysters andstoring them near their houses in the hope that the fishery will be re-opened. Therespondents at Waghina indicated that big harvests of pearl oysters have occasionally beenmade since the ban and the shell sold to illegal exporters.3.1.2 Current DistributionThe Waghina community indicated that plenty of silver-lip oysters are available and that thebest places to find them are throughout Hamilton Channel, in the narrow channel atNgosele and in the channel running from Kia towards Waghina.The respondents from Kia indicated that silver-lip oysters can still be found at shallowdepths and that they occur on a variety of substrata, including mud and broken coral. Theyalso mentioned that oysters can be found in the small channel at Kakadeke at depths of 10-20 m.According to the Marovo (Telina/Mbili) community, silver-lip oysters can be found inalmost every channel between the islands, at depths greater than 20 m and sometimes occurin good numbers. Silver-lip oysters were also reported to occur on stony substrata in MbiliPassage and in nearby 30 m deep channels.At Marau, silver-lip oysters were reported to be widespread and present in lagoons,passages and open water. The shallow Suukitahi Passage, the slopes of the passes betweenthe islands and an area NE of Taiaru Reef were reported to be good fishing sites.The interviewees at Ngella, indicated that shell is taken from the water at the northern endof Mboli Passage and in the area to the east and west of the passage where it spills out intothe open sea. At Mboli Passage itself, shell collecting begins part way up the passage (fromHoniara end) and extends right up to the mangroves. It was reported that no shells occur atthe southern part of Mboli Passage nor where it opens to the sea. At Sandfly Passage, shellis taken in the bays and slopes to north and south, rather than in the centre which is deep.The favoured locations are around Mbike Island and the promontory to the north of this(Hanipana Pt), Roderick Dhu Bay and Haroro Bay. The respondents also mentioned thatshell occurred in Hanesavo Harbour and the passage running NE/SW to the E ofMangalonga Island, to the NW of Sandfly Passage.Three collecting areas were identified on the east and west sides of the northern mouth ofMaramasike Passage.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 8

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20083.2 Underwater Visual Census3.2.1 AbundanceSilver-lip pearl oysters were found on 33 of the 96 transects surveyed, yielding a total of 117oysters. Waghina, Kia and Mboli Passage (Narula Passage), had the largest populations,with mean densities of 1.23 ± 0.38, 1.03 ± 0.27 and 0.66 ± 0.27 pearl oysters per 400m 2transect, respectively (Figure 2). Pearl oysters were not found at Mbili Passage and Telina 1and were scarce (i.e. had an average density of

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20083.3 Remote Video CensusEleven objects that could be “possible” pearl oysters were sighted across the video transectsanalysed. Two of these were dead silver-lip pearl oyster shells lying open on the seabed.“Possible” oysters that appeared to be alive were seen on only nine transects, with only onespecimen being evident per transect. Three “possible” oysters were found along the set oftransects surveyed at Kia and Waghina, whereas two “possible” oysters were observed offMalaita and Sandfly Passage. The identity of the “possible” oysters could not be confirmed,because the objects were overgrown by other biota. These animals were found on silty sand,living reef, a mixture of coral sand and rubble and on coral sand with live coral rubble. Onlyseven of the “possible” oysters could be measured relative to the laser guides; the five livespecimens varied in length from 68 - 116 mm, whereas the two dead specimens were 36 mmand 140 mm long. Overall this yields a maximum video census estimate of 8 possibleoysters per 400 m 2 .Ten types of benthic substrata were distinguished during the analysis of remote videotransects. The primary components identified were silty sand, coral sand, dead reef, lowrubble, coarse rubble, medium rubble, heavy rubble and living reef. The substratum at twosites off Malaita was dominated by silty sand, except for one of the transects at Site 1, whichwas composed of dead reef. The substratum at Site 3, Malaita was characterised by coralsand. The substratum at Sites 1 and 2, Sandfly Passage were also dominated by silty sand,but that off Site 3 consisted of either coral sand, a mixture of coral sand and rubble or livingreef. The substratum at Site 1, Kia consisted of silty sand or silty sand plus low rubble, whilethat at Site 3 was composed of either silty sand or silty sand plus heavy rubble. Thesubstratum at Site 2, Kia was quite different, consisting of either coarse sand and mediumrubble, coral sand and living coral or living reef. The substratum at Waghina consisted of amixture of coral sand and various grades of rubble.3.4 Estimates of Population SizeThe total area of potential pearl oyster habitat at Kia, Mboli Passage and Waghina wasestimated to be approximately 2000, 1250 and 4163 hectares, respectively (Figures 9 - 11).These areas were estimated to support a total of 136,000 ±, 42,016, 55,688 ± 14,598 and345,529 ± 141, 353 silver-lip pearl oysters, respectively. It should, however, be noted thatoysters < 175 mm, the size preferred by pearl farmers, comprised about 3.6% of the total,with total estimates being 1114 (4.3%) at Kia, 0 in Mboli Passage and 6,910 (5.4%) atWaghina.3.5 Number of Sustainable QuotasThe first step in a sustainable quota management system for silver-lip oysters is the settingof an annual total allowable catch (TAC). The latter is normally based on the informationthat is available about the abundance, size structure, recruitment, growth, reproduction, andmortality of the species. For the silver-lip oyster fishery to be sustainable, the loss ofbiomass due to natural mortality plus fishing mortality must not exceed the increase inbiomass due to recruitment of smaller individuals into the fishery, growth andreproduction. Given the small size of the silver-lip oysters stocks (and large size ofindividuals within the stocks) at present and lack of information on recruitment, growth,reproduction and mortality, it is not feasible to determine a TAC or allocate sustainablequotas to potential fishers at this time.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 10

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008On the other hand it may feasible to gather some silver-lip pearl oysters to establish ahatchery with a view to restock habitats in future. This could entail collection of smallnumbers (say, < 100) of mature females, which constitute the majority of the existing stock,and importation of some males into Solomon Islands.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 11

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20084.0 DISCUSSIONThe current surveys undertaken by divers indicated that silver-lip pearl oysters werepresent at six of the eight historical fishing areas sampled and that densities at Waghina, Kiaand Mboli Passage (Narula Passage) were considerably greater than those at Malaita, MarauSound and Sandfly Passage. However, the maximum average density within any onelocation was less than 1.25 animals per 400 m 2 and none of these stocks could be consideredcommercially significant. The highest density recorded per 400 m 2 transect was 12.4 andoccurred on Transect 1, Site 2, Mboli Passage (Appendix 1). The remote video censusesindicated that pearl oysters may also be present in deeper water at Kia, Waghina, Malaitaand Sandfly Passage, however, even here the “possible” pearl oysters were present at lowdensities. The low densities of silver-lip oysters observed are consistent with previoussurveys undertaken in Kia and Waghina in the late 1980’s and early 1990’s (Colgan, 1993).While those surveys used different sites and different methods and are not strictlycomparable, they recovered approximately 50 shells in a week of diving. The current surveysuggests that stocks have either recovered little since fishing was prohibited in 1994 or thatthey did recover, but have subsequently been depleted by natural mortality or illegalfishing.There is certainly evidence that natural mortality can reduce silver-lip pearl oyster stocks,with Ngella being decimated by disease in the early 1970s (Gauld 1975 in Colgan 1993) andreports of a “red tide” causing heavy mortality of silver-lip oysters at Kia in 1971 (Colgan1993), but it is not known whether these have caused large-scale natural mortality in recentyears. No anecdotal evidence of disease was offered in interviews with local villagers, whodid however confirm that fishing of pearl oysters has taken place at both Waghina and KiaPassage since exploitation was prohibited. Illegal exports of silver-lip and black-lip pearloysters from these locations have been intercepted by Fisheries, however, it is not knownhow much shell was collected (J. Leqata pers. comm.).The population structure that we observed was biased towards large individuals, with anoverall median size of 210 mm. Pearl farmers in Western Australia prefer oysters aroundthe 125 mm size class to those in the 150-160 mm size classes for round pearl production(Fletcher et al. 2006) and will not harvest pearl oysters larger than 175 mm DVM. We foundno shell smaller than 160 mm and overall only 4.2% were less than 175 mm DVM. Themajority of oysters found during the current survey were beyond the limit currentlyconsidered most suitable for pearl farming. Previous surveys had also indicated that mostof the oysters found were >200 mm in DVM and too large for pearl culture (Nichols 1988and Batty and Kile 1990 in Colgan 1993).The simplest explanation for the presence of small populations of large individuals, in thecurrent survey is a persistent failure of reproduction, spat settlement and/or recruitmentover the past decade. The reproductive success of many marine invertebrates is episodic,with a low background level of recruitment occasionally being interrupted by very goodyears (Gaines et al. 1985; Dye 1990; McShane and Smith 1991; Hughes and Tanner 2000).The size frequency distributions of some of the fished silver-lip oyster populations inAustralia suggest that recruitment is also episodic in some populations of pearl oysters (Hartand Friedman 2004). In broadcast spawners, the distribution and abundance of adults has aprofound influence on individual reproductive success (Levitan et al. 1992). The reductionin abundance and greater spacing of adult oysters brought about by exploitation is a factorthat may have contributed to poor reproductive success and low larval production. In someThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 12

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008heavily exploited broadcast spawners, recruitment may rely on either natural or humaninduced refuge populations that act as reservoirs for larval production (Clareboudt 1999).Prolonged recruitment failure in populations of silver-lip pearl oysters is likely to affect thesex ratio. Pearl oysters are protandrous hermaphrodites (i.e. they change sex from male tofemale as they mature) and most of the oysters found during the current and previoussurveys undertaken in the Solomon Islands are likely to have been female. In WesternAustralia, animals develop into males at a length of 110-120 mm, but by the time they reach170 mm approximately 50% of individuals are female and by the time they reach 190 mmthey are >9 years old and all female (Fletcher et al. 2006). The temporal/size aspects of sexchange in animals at Solomon Islands is not known, and gonads samples were not taken inthis or earlier surveys, but the dominance of old, large individuals in all of the surveysundertaken to date suggest that sex ratio may be a potential barrier to population growthand is worthy of further investigation. The susceptibility of pearl oyster stocks to suchrecruitment over-fishing has been noted previously (Sims 1992).If over-exploitation, resulting in low density and a biased sex ratio, has caused a markeddecline in the number of recruits, recovery of the fished population is likely to either be veryslow or non-existent (Jennings et al. 2003). The three phases of exploitation to which stocksin the Waghina region have been subjected implies that some degree of recovery of fishedstocks has occurred in the past. The phasing could also simply reflect a change in fishingmethod, with divers in the latter phase using hookah equipment to access stocks in deeperwater. If the silver-lip pearl oyster stocks in the Solomon Islands eventually recover fromthe last phase of commercial exploitation, fisheries management strategies will need to beimplemented to protect the recovered populations to prevent recruitment overfishing priorto any further form of exploitation. One option for doing this would be to establish anetwork of spawner sanctuaries within defined fishing zones or fully-protected, permanentmarine reserves (Tegner 1993; Peterson 2002). If healthy stocks can be located in otherregions of the Solomon Islands, the possibility of facilitating the recovery of depletedpopulations by means of stock enhancement programmes should be investigated. Stockscould be enhanced by either releasing juveniles raised in hatcheries, transplanting juvenilesfrom naturally occurring stocks into areas where recruitment is low but conditions forgrowth and survival are good or by using translocated broodstock to enhance larvalproduction (Bell et al. 2005).However, it is possible to reduce populations to points at which recovery is barely possible.In some of the atolls in the Cook Islands and French Polynesia, where black-lip pearl oysterswere subjected to intense fishing during the late nineteenth and early twentieth centuries,stocks had not recovered from over-exploitation by the 1980s (Intes 1984; Sims 1990). Thesituation at Suwarrow in the Cook Islands, in fact, became so bad in the early 1990s thatoysters were imported from Penrhyn to assist in the recovery of this population (Dalzell andAdams 1996). Sims (1992) suggested that rapid water exchange and loss of planktoniclarvae through passages in the reef probably contributed to the lack or recovery of black-lippearl oyster populations in the open atoll systems of the Cook Islands. In more “open” coralreef systems, such as those of Solomon Islands, dispersal of larvae from unexploited stocksand refuge stocks beyond the depths in which most divers operate, could lead to recovery ofsome stocks, albeit at a slow rate.The present survey indicated that silver-lip pearl oysters occurred on a variety of benthicsubstrata, including mud, sand, gravel, coral rubble and various mixtures thereof, but weregenerally more abundant in areas characterised by coral rubble, gravel/rubble, sand/rubbleand sand/shell/coral and with a fast flow of water over them. Silver-lip pearl oyster spatselect a hard surface for initial attachment (Gervis and Sims 1992; Wells and Jernakoff 2006)The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 13

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008and individuals found on soft sediments are thought to have been displaced to thesehabitats after detachment of their byssus (Gervis and Sims 1992) or to be attached to brokenshells, coral fragments or pebbles embedded in the sediment (Hynd 1957 in Colgan 1993).The largest area of good habitat appears to be through Hamilton Channel at Waghina and itis this that probably makes it the best potential site from silver-lip, even though it currentlyhas a low population density. However, the economic production of pearls is dependent onthe availability of suitable culture sites, reliable sources of oysters, funding to establish andoperate the farm, grafting technicians and a market for the pearls. The layman’s manual onbasic methods of pearl farming indicates that it is not profitable to hire a grafting technicianunless there are at least 3,000 pearl oysters of the right size and condition in which toimplant nuclei (Haws 2002). As the three major fishing grounds surveyed in the SolomonIslands were estimated to contain between 1,392 and 8,638 silver-lip pearl oysters of anappropriate size, it would appear that there are insufficient stocks at present to support aviable pearl production industry based on the harvest of wild shell and that it isinappropriate at this stage to make any quota available for commercial operations.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 14

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20085.0 CONCLUSIONSThe interviews with coastal communities provided information on the location of historicaland present day fishing grounds for silver-lip pearl oysters and some areas of SolomonIslands where silver-lip oysters have recently been observed. The underwater visualcensuses undertaken at the eight historical fishing grounds indicated that the density ofsilver-lip pearl oysters was generally low and that most animals were larger than the sizeconsidered suitable for pearl farming. The sub-samples that were examined had highquality shell with white nacre in the middle of the interior and gold, white, or off-whitemargins. Kia, Mboli Passage and Waghina, the three major fishing grounds surveyed, wereestimated to contain between 1,392 and 8,638 silver-lip pearl oysters of an appropriate sizefor pearl farming. The paucity of the stocks examined and unfavourable size of the majorityof oysters suggest that commercial exploitation of wild silver-lip pearl oysters for pearlculture is not an ecologically or economically viable option at present.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 15

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20086.0 ACKNOWLEDGEMENTSThis report was written by Drs Theresa Dye, Marcus Lincoln Smith, Ian Hawes and JonLeqata. Transects were surveyed by Francis Kera, Ian Hawes, Alex Meloty, Patrick Mesia.,Ronnie Posada, Peter, Rex, Anne-Maree Schwarz, Mason Tauku, Regon Warren and MarcusLincoln Smith. Ian Hawes examined the nacreous layers of the shells and Jon Leqataconfirmed reports of recent illegal harvesting.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 16

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 20087.0 REFERENCESBell, J.D., Rothlisberg, P.C., Munro, J.L., Loneragan, N.R., Nash, W.J., Ward, R.D. andAndrew, N.L. (2005). Restocking and stock enhancement of marine invertebratefisheries. Advances in Marine Biology 49, pp. 374.Clareboudt, M. (1999). Fertilization success in spatially distributed populations of benthicfree-spawners: a simulation model. Ecological Modelling 121, 221-233.Colgan, K. (1993). Survey of Pinctada maxima, Gold-lip pearl oysters, in the Waghina region,Solomon Islands. FFA Report no. 93/46. South Pacific Forum Fisheries Agency,Honiara, Solomon Islands, pp. 26 plus appendices.Dalzell, P. and Adams, T.J.H. (1996). Sustainability and management of reef fisheries in thePacific Islands. Paper presented at the 8th International Coral Reef Symposium,Panama City, Panama, 24-29 June 1996.Dye, A.H. (1990). Episodic recruitment of the rock oyster Saccostrea cucullata (Born, 1778) onthe Transkei coast. South African Journal of Zoology 25; pp. 185-187.Fletcher, W., Friedman, K., Weir, V., McCrea, J. and Clark, R. (2006). Pearl Oyster Fishery.ESD Report Series No. 5. Department of Fisheries, Western Australia.Friedman, K.J. and Bell, J.D. (1999). Variation in abundance of blacklip pearl oyster (Pinctadamargaritifera Linne.) spat from inshore and offshore reefs in Solomon Islands.Aquaculture 178: pp. 273-291.Friedman, K.J., Bell, J.D. and Tiroba, G. (1998). Availability of wild spat of the blacklip pearloyster, Pinctada margaritifera, from 'open' reef systems in Solomon Islands.Aquaculture 167: pp. 283-299.Friedman, K.J. and Southgate, P.C. (1999). Growout of blacklip pearl oysters, Pinctadamargaritifera collected as wild spat in the Solomon Islands. Journal of Shellfish Research18: pp. 159-167.Gaines, S. D., Brown, S., Roughgarden, J. (1985). Spatial variation in larval concentration as acause of spatial variation in settlement for the barnacle, Balanus glandula. Oecologia 67:pp. 267-273Gervis, M.H. and Sims, N.A. (1992). The biology and culture of pearl oysters (Bivalvia:Pteriidae). ICLARM Studies and Reviews 21: 49 pp.Hart, A.M. and Friedman. K.J. (2004). Mother-of-pearl shell (Pinctada maxima): Stockevaluation for management and future harvesting in Western Australia. FRDCProject 1998/153, Fisheries Research Contract report no. 10, Department of Fisheries,Western Australia, pp. 84.Hawes I and Messia P. 2007. Stimulating Investment in Pearl Farming in SolomonIslands Report I. Past research and development on blacklip pearl oysters inSolomon Islands. Report to Ministry of Fisheries and Marine Resources, SolomonIslands. 33 pp.Haws, M. (2002). The Basic Methods of Pearl Farming: A Layman’s Manual. Center for Tropicaland Subtropical Aquaculture Publication No. 127. pp. 79.Hughes, T. P., and J. E. Tanner. (2000). Recruitment failure, life histories, and long-termdecline of Caribbean corals. Ecology 81: pp. 2250–2263.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 17

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008Intes, A. (1984). L’huitre nacrière et perlière en Polynesie Francaise: mutation del’exploitation. La Pêche Maritime 1272: pp. 161-166.Jennings, S., Kaiser, M.J. and Reynolds, J.D. (2003). Marine Fisheries Ecology. BlackwellPublishing. pp. 417.Kile, N. (2000). Solomon Islands marine resources overview. Pacific Economic Bulletin 15: pp.143-147.Levitan, D.R., Sewell, M.A. and Chia, F.S. (1992). How distribution and abundance influencefertilization success in the sea urchin Strongylocentrotus franciscanus. Ecology 73, pp.248-254.McShane, P.E. and Smith (1991). Recruitment variation in sympatric populations of Haliotisrubra (Mollusca: Gastropoda) in southeast Australian waters. Marine Ecology ProgressSeriesPeterson, C.H. (2002). Recruitment overfishing in a bivalve mollusc fishery: hard clams(Mercenaria mercenaria) in North Carolina. Canadian Journal of Fisheries and AquaticScience 59: pp. 96–104.Ramohia, P. (2006). Fisheries resources: commercially important macroinvertebrates.Solomon Islands marine assessment. In: Solomon Islands Marine Assessment: technicalreport of survey conducted May 13 to June 17, 2004. (eds. Green, A., Lokani, P., Atu, W.,Ramohia, P., Thomas, P. and Almany, J. TNC Pacific Island Countries Report No1/06.Richards, A.H., Bell, L.J. and Bell, J.D. (1994). Inshore fisheries resources of Solomon Islands.Marine Pollution Bulletin 29: pp. 90-98.Shepherd, S. A., J. R. Turrubiates-Morales, and K. Hall. 1998. Decline of the abalone fisheryat La Natividad, Mexico: overfishing or climate change? Journal of Shellfish Research.17: pp. 839–846.Sims, N.A. (1990). The black-lip pearl oyster, P. margaritifera, in the Cook Islands. M.Sc. thesis,University of New South Wales, Sydney.Sims, N.A. (1992). Abundance and distribution of the black-lip pearl oyster, Pinctadamargaritifera (L.) ( Pteriidae; Bivalvia ), in the Cook Islands, South Pacific. AustralianJournal of Marine and Freshwater Research 43: pp.1409-1421.SPC (2002). SPC Aquatic Portal. Countries. Solomon Islands. General Informations.http://www.spc.int/aquaculture/site/countries/solomon_islands/index.asp?ou=pays&country_dir=solomon_islands&pays=solomon_islands&country_name=Solomon%20IslandsSPC (2007). SPC Aquatic Portal. National statistics.http://www.spc.int/aquaculture/site/countries/statistics.aspTegner, M.J. 1993. Southern California abalone—can stocks be rebuilt using marine harvestrefugia? Canadian Journal of Fisheries and Aquatic Science 50: pp. 2010–2018.Underwood, A.J. (1997). Experiments in Ecology: their logical design and interpretation usinganalysis of variance. Cambridge University Press. pp. 504.Wells, F.E. and Jernakoff, P. (2006). An assessment of the environmental impact of wildharvest pearl aquaculture (Pinctada maxima) in Western Australia. Journal of ShellfishResearch 25: pp. 141-150.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 18

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008WorldFish Center (2007). Success Stories. South Sea Treasures. Pearl farming for newlivelihoods in the Solomon Islands and the Pacific.http://www.worldfishcenter.org/v2/ss-treasures.htmlThe Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 19

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008TABLESTable 1. Results of analysis of variance comparing densities of silver-lip pearl oystersamong and within the fishing grounds at Mboli Passage, Kia and Waghina.Table 2. Mean (± S.E.), median, maximum and minimum shell lengths and widths of thesilver-lip oysters collected at Mboli Passage (n = 28), Kia (n = 46) and Waghina (n = 37).Table 3. Results of analysis of variance comparing (a) lengths and (b) widths of silver-lippearl oyster shells found at Mboli Passage, Kia and Waghina.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 20

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon IslandsTable 1. Results of analysis of variance comparing densities of silver-lip pearl oysters among andwithin the fishing grounds at Mboli Passage, Kia and Waghina.Data: UntransformedCochran's C = 0.315, nsSource of variation SS DF MS F P F versusFishing grounds = FG 1.995 2 0.998 0.380 0.697 Sites(FG)Sites(FG) 15.580 6 2.597 3.170 0.017 ResidualResidual 22.090 27 0.818Total 39.665 35

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon IslandsTable 2. Mean (± S.E.), median, maximum and minimum shell lengths and widths of thesilver-lip oysters collected at Mboli Passage (n = 28), Kia (n = 46) and Waghina (n = 37).(a) Shell lengthsLocationShell Lengths (mm)Mean (± S.E.) Median Minimum MaximumMboli Passage 218±4 213 185 278Kia 221±3 225.5 167 255Waghina 217±4 217 164 268(b) Shell widthsLocationShell Widths (mm)Mean (± S.E.) Median Minimum MaximumMboli Passage 48±2 46.5 35 69Kia 50±1 52 31 60Waghina 50±1 47 31 67

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon IslandsTable 3. Results of analysis of variance comparing (a) lengths and (b) widths of silver-lip pearloyster shells found at Mboli Passage, Kia and Waghina.(a) Shell lengthsSource of Variation SS df MS F PBetween Locations 339.851 2 169.925 0.307 0.736Within Locations 59823.122 108 553.918Total 60162.973 110(b) Shell widthsSource of Variation SS df MS F PBetween Locations 196.248 2 98.124 1.387 0.254Within Locations 7638.779 108 70.729Total 7835.027 110

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Final, June 2008FIGURESFigure 1. Google Earth image showing the relative position of the fishing grounds surveyedin the Solomon Islands.Figure 2. Mean (± S.E.) densities of silver-lip pearl oysters per 400 m 2 transect at each fishingground.Figure 3. Mean (± S.E.) densities of silver-lip pearl oysters per 400 m 2 transect at the sitessurveyed at Mboli Passage, Kia and Waghina.Figure 4. Frequency distribution of (a) lengths and (b) widths of silver-lip pearl oysterscombined across the eight fishing grounds.Figure 5. Length frequency distribution of silver-lip pearl oysters found at (a) MboliPassage (b) Kia and (c) Waghina.Figure 6. Width frequency distribution of silver-lip pearl oysters found at (a) Mboli Passage(b) Kia and (c) Waghina.Figure 7. Percentage of shells from Mboli Passage, Kia and Whagina classified as havingeither high or suspect external shell.Figure 8. Proportion of shells collected from Kia, Waghina, Mboli Passage, Marau andMalaita with white (white bar), gold (pale grey bar) and off-white (dark grey bar) marginsalong the nacreous layer of the shell.Figure 9. Extract from MaxSea chart showing potential habitat for pearl oysters at Kia.Figure 10. Extract from MaxSea chart showing potential habitat for pearl oysters in MboliPassage.Figure 11. Extract from MaxSea chart showing potential habitat for pearl oysters atWaghina.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 24

Abundance, Size Structure and Quality of White-Lip Pearl Oysters in the Solomon IslandsChoiseulNewGeorgiaNew GeorgiaWaghinaKiaWaghinaKiaSanta IsabelTelinaMbili PassageSandfly PassageMboli PassageTelinaGuadalcanalMbili PassageSanta IsabelMalaitaMarau SoundSandfly PassageMalaitaSan CristobalMboli PassageGuadalcanalMarauSoundSan CristobalFigure 1. Google Earth image showing the relative position of the fishing grounds sampled in the Solomon Islands. 1. Kau,Malaita; 2. Marau; 3. Mboli Passage; 4. Sandfly Passage; 5. Mbili Passage; 6. Telina; 7. Kia; and 8. Waghina.The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands2.00Density1.501.000.500.00MalaitaMarauMboli PassageMbili PassageTelina 1KiaWaghinaLocationSandly PassageFigure 2. Mean (± S.E.) densities of silver-lip pearl oysters per 400 m 2 transect at eachfishing ground.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands3.002.50baa2.00Density1.501.00a0.50ab0.001 2 3 1 2 3 1 2 3Mboli Passage Kia WaghinaSite (Location)Figure 3. Mean (± S.E.) densities of silver-lip pearl oysters per 400 m 2 transect at the sitessurveyed at Mboli Passage, Kia and Waghina (different symbols above bars indicate thatdensities differ between sites).The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands20(a) Shell Length16Frequency (%)1284030170 180 190 200 210 220 230 240 250 260 270 280(b) Shell WidthLength (mm)25Frequency (%)2015105035 40 45 50 55 60 65 70Width (mm)Figure 4. Frequency distribution of (a) lengths and (b) widths of shells of silver-lip pearloysters combined across the eight fishing grounds (n = 119).The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands25(a) Mboli Passage (n = 28)2015105025170 180 190 200 210 220 230 240 250 260 270 280(b) Kia (n = 46)20Frequency (%)15105025170 180 190 200 210 220 230 240 250 260 270 280(c) Waghina (n = 37)2015105The Ecology Lab Pty Ltd - Marine and Freshwater Studies0170 180 190 200 210 220 230 240 250 260 270 280Length (mm)Figure 5. Length frequency distribution of silver-lip pearl oysters found at (a) MboliPassage (b) Kia and (c) Waghina.

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands40(a) Mboli Passage (n = 28)302010035 40 45 50 55 60 65 7040(b) Kia (n = 46)Frequency (%)30201004035 40 45 50 55 60 65 70(c) Waghina (n = 37)302010035 40 45 50 55 60 65 70Width (mm)Figure 6. Width frequency distribution of silver-lip pearl oysters found at (a) MboliPassage, (b) Kia and (c) Whagina.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands10080Percentage6040200Mboli Kia WaghinaLocationFigure 7. Percentage of shells from Mboli Passage, Kia and Waghina classified as havingeither high (light bars) or suspect (dark bars) external shell.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands10018010 105Percentage604010200KiaWaghinaMboliMarauMalaitaLocationFigure 8. Proportion of shells collected from Kia, Waghina, Mboli Passage, Marau andMalaita with white (white bar), gold (pale grey bar) and off-white (dark grey bar)margins along the nacreous layer of the shell. Numbers above bar indicate sample sizeper location.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon IslandsPotential Oyster Habitat (2000 Hectares)Total estimated number of oysters = 136 000Number smaller than 175 mm = 34752 kilometresFigure 9. Extract from MaxsSea chart showing potential habitat for pearl oysters at Kia. Note that grid lines are displayed atapproximately 926 metre intervals (each square = 87 hectares).The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Draft, May 2008PLATESPlate 1. Pearl oyster shells with (a) white, (b) gold and (c) off-white margins along theirnacreous layers.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 36

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands(a) White nacreous marginPlate 1. Pearl oyster shells with (a) white, (b) gold and (c) off-white margins along theirnacreous layers.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands(b) Gold nacreous marginPlate 1 continued.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands(c) Off-white nacreous marginPlate 1 continued.The Ecology Lab Pty Ltd - Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Draft, May 2008APPENDICESAppendix 1. Questionnaire used in structured interviews of island communities.Appendix 2. Details of transects divers were towed along during the underwater visualcensus.Appendix 3. Details of remote video transects undertaken at Malaita, Marau, SandflyPassage, Kia and Waghina.Appendix 4. Summary of the results of interviews with island communities.The Ecology Lab Pty Ltd – Marine and Freshwater Studies Page 40

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon IslandsAppendix 1. Questionnaire used in structured interviews of island communities.1. Was capture of white-lipped pearl oysters an important activity around here? How important wasit as a source of money to the local community?Very important Quite important Not important2. How many people used to be involved in this activity? Did they make their living from this?1 or 2 2-5 >5 Full living Part living No3. Was it local people that did the fishing?LocalOutsiders4. What sort of places did they fish in?Lagoon Passage Open water5. Were some areas better than others?Yes Not sure No6. What sort of equipment did they use to collect shells?Mask Hookah SCUBA Dredge7. How deep did they have to dive for shells?10 m 10-20 m 20-30 m >30 m8. Which areas were the most favoured by fishers? Can you show me on this map?9. Do people ever swim or dive in these places now?YesNo10. Does anybody fish for white-lip pearl oysters at the moment?Yes several One or two Nobody11. Are they local people or from outside?LocalOutsiders12. What do they do with the oysters that they catch?Use locally Sell locally Sell to outsiders Move to another place13. Where do they usually dive for the oysters? Can you show us on this map?14. Do they dive in deep water or shallow?10 m 10-20 m 20-30 m >30 m15. If oysters had been moved from one place to another, would you be able to let us know?Yes No Unsure16. Can you show is these places or help us place them on the map?17. Has anybody from fisheries ever been along to check on the status of the pearl oysters?No Not recently (when) Recently (when)18. We are hoping to come back with some divers to look at the status of thepearl oysters. Would you be happy for us to look in your waters?YesNo19. After the ban on the harvest of white lip have you seen oysters in?Place dived beforeNew places20. Can you show us on the map or give us the names of these places?21. How deep have you seen white lip oysters?10 m 10-20 m 20-30 m >30 m22. What are the best times to dive for shell?1 st quarter 2 nd quarter 3 rd quarter Last quarter23. Was the inside of the shells damaged by many scars?All shells scarred Biggest shells scarred No shells scarred

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon IslandsAppendix 2. Details of transects swum by divers during the underwater visual census (lat, latitude; long, longitude; min, minute or minimum; m, metre; avg, average).Location and GPSdatumSite Transect Date Time:startLat: startminLong: startminTime:endLat: endminLong: endminBottomTime(min)Max depth Depth (m):(m) min/avg/rangeNo.oysterscollectedTransect Bottom typelength (m)Malaita 1 1 18-Apr 9:30 21.673 20.501 9:51 21.636 20.507 12 30.5 0 69 sand/rubble9° S 161° E 1 2 18-Apr 11:01 21.373 20.456 11:20 21.445 20.45 10 28 0 134 coral/sand1 3 18-Apr 11:35 21.751 20.462 11:52 21.804 20.478 10 34 0 102 sand1 4 18-Apr 12:14 21.946 20.945 12:34 21.871 20.945 10 31.1 0 139 rubble2 1 19-Apr 9:41 21.246 22.437 9:57 21.229 22.275 10 29.4 0 298 sand/rubble2 2 19-Apr 10:09 21.229 22.368 10:27 21.214 22.275 10 27.7 0 172 sand/rubble2 3 19-Apr 10:56 21.306 22.505 11:16 21.239 22.43 12 32.8 1 185 sand/rubble2 4 19-Apr 11:34 21.259 22.441 11:52 21.229 22.286 10 31.8 0 289 sand/rubble3 1 19-Apr 2:39 19.585 20.007 3:56 19.632 20.004 11 26.5 0 87 coral/sand3 2 19-Apr 4:12 19.551 20.171 4:30 19.582 20.092 10 29.3 0 155 sand/rubble3 3 20-Apr 9:16 19.678 19.953 9:37 19.618 20.018 13 30.9 0 163 rubble3 4 20-Apr 9:55 19.6 20.023 10:14 19.559 20.161 12 28.9 0 263 sand/rubbleMarau Sound 1 1 23-Apr 8:56 49.785 49.644 9:14 50.057 49.72 11 27.2 0 522 coral/sand channels9° S 160° E 1 2 23-Apr 9:35 50.426 49.496 9:55 50.534 49.599 10 30.2 0 274 coral at start then sand1 3 23-Apr 10:05 50.523 49.615 10:27 50.626 49.692 10 31.7 1 237 coral, sand1 4 23-Apr 11:34 50.067 49.964 11:54 49.968 49.885 10 35.3 1 233 sand/rubble/coral2 1 23-Apr 12:16 50.183 48.844 12:43 50.187 49.174 20 22 0 602 fine sand grading later to mud2 2 23-Apr 14:58 49.732 48.582 15:23 49.977 48.666 20 16.3 1 479 coarse clean sand2 3 23-Apr 15:47 48.635 48.257 16:13 49.018 48.338 20 16.7 2 725 coral at start then sand2 4 23-Apr 16:27 49.4 48.367 16:51 49.011 48.329 20 12.4 0 724 sand/rubble3 1 23-Apr 9:34 49.408 49.417 9:53 49.458 49.442 10 30 0 206 sand3 2 23-Apr 10:04 49.456 49.399 10:21 49.358 49.344 11 31.4 0 415 sand3 3 24-Apr 11:07 49.491 49.365 11:27 49.602 49.406 10 29 0 438 sand3 4 24-Apr 11:44 49.398 49.307 12:00 49.531 49.339 10 31.2 0 506 sandMboli Passage 1 1 30-Apr 8:37 6.678 17.148 8:58 6.633 17.3 15 19.7 18 1 290 sand9° S 160° E 1 2 30-Apr 9:21 6.959 16.987 9:44 6.76 17.03 15 20.4 18 1 377 mud/small stones1 3 30-Apr 10:01 6.384 17.617 10:23 6.241 17.778 15 19.4 16 4 396 sand1 4 30-Apr 11:37 6.097 17.849 11:57 5.918 17.983 15 14 12 2 412 coral rubble2 1 30-Apr 14:03 4.745 18.381 14:30 4.967 18.422 15 18 14 13 418 coral rubble2 2 1-May 8:17 5.67 18.141 8:31 5.627 18.284 10 16 14 5 273 sand and rubble2 3 1-May 8:50 5.788 18.066 9:11 5.674 18.225 15 18.9 16 0 359 gravel2 4 1-May 9:28 5.883 18.052 9:50 5.708 18.215 15 20.9 14 1 440 sand, some gravel3 1 1-May 11:08 7.289 17.322 11:28 7.173 17.183 15 18.1 17 0 333 mud3 2 1-May 11:42 7.404 17.245 12:04 7.243 17.141 15 21.5 19 1 354 mud/shell/rock outcrop3 3 1-May 13:50 7.751 16.986 14:12 7.655 17.118 15 23 17 0 300 mud3 4 1-May 14:25 7.62 17.252 14:46 7.739 17.166 12 24.9 22 1 271 mudcontinued

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon IslandsAppendix 2 continued.Location and GPSdatumSite Transect Date Time:startLat: startminLong: startminTime:endLat: endminLong: endminBottomTime(min)Max depth Depth (m):(m) min/avg/rangeNo.oysterscollectedTransect Bottom typelength (m)Sandfly Passage 1 1 5-May 9:05 59.159 5.895 9:20 59.1 5.908 10 32.6 29 0 112 mud, coral plates8° 59' S, 160° 06' E 1 2 5-May 9:45 58.977 5.508 10:09 58.962 5.608 10 28.7 26 0 185 mud, coral plates1 3 5-May 12:29 58.638 5.796 12:52 58.794 5.784 11 29.8 26 0 290 mud1 4 5-May 2:23 59.143 5.848 2:43 59.252 5.914 10 30 28 0 235 mud, coral plates2 1 5-May 3:38 2.479 6.512 3:58 2.396 6.44 10 29.3 26 0 202 sand, coral heads, coral rubble2 2 7-May 9:11 1.622 7.21 9:33 1.691 7.092 11 36.6 30 0 251 40% plate coral, 60% coral sand2 3 7-May 9:50 1.757 7.244 10:11 1.762 7.147 11 29.7 27 0 178 80% plate coral, 20% sand2 4 7-May 10:37 1.891 7.308 10:55 1.906 7.188 10 30.9 27 0 221 60% coral, 40% sand3 1 6-May 9:11 0.948 8.103 9:31 1.025 8.18 10 29.7 25 0 200 60% sand 40% coral, coral reef at end.3 2 7-May 14:04 1.383 7.56 14:22 1.481 7.652 10 31.7 26 2 248 30%coral 7%fine sand3 3 7-May 14:56 1.714 7.822 15:17 1.603 7.799 10 28 24 0 210 sand, with coral at end only3 4 7-May 16:15 1.558 7.562 16:35 1.46 7.629 10 32.9 29 0 219 30% plate coral, 70% sand with coral shrapnelMbili Passage 1 1 9-May 11:56 40.258 11.069 12:18 40.329 10.89 12:30 29.6 18-30 0 353 all sand08° 41' S 158 12' E 1 2 9-May 12:30 40.317 11.198 12:55 40.416 10.923 17 23.3 17-22 0 536 40% sand +coral rubble; 30%sand;1 3 9-May 13:09 40.258 10.881 13:26 40.092 10.824 10 26.5 24 0 325 all sand1 4 9-May 14:55 39.86 10.694 15:16 40.067 10.837 17 23 20-22 0 464 85% sand; 15% coral2 1 9-May 15:48 37.073 9.948 16:07 36.977 9.897 10 29.9 27 0 201 all mud2 2 9-May 16:21 36.914 9.891 16:39 36.819 9.852 10 28.2 25 0 190 60% mud; 40% reef2 3 9-May 17:01 36.936 9.831 17:18 36.851 9.765 10 28.8 27 0 198 all mud2 4 10-May 9:11 36.797 9.529 9:34 36.638 9.443 10 34 32 0 334 100% fine mud3 1 10-May 10:21 41.238 11.357 10:36 41.235 11.282 4 20.2 11-17.5 0 137 100% fine mud3 2 10-May 12:51 41.31 11.349 13:13 41.376 11.181 15 22.6 21 0 331 100% fine mud3 3 10-May 13:29 41.498 10.937 13:50 41.433 11.082 10 24.6 22 0 291 100% fine mud3 4 10-May 14:24 41.617 11.424 14:43 41.495 11.342 11.5 18.6 15 0 271 80% mud 20% coral reefTelina 1 1 11-May 7:35 31.171 3.712 7:52 31.074 3.623 12 21.2 20 0 243 100% mud I dead shell08° 31'S 158° 04'E 1 2 11-May 8:09 30.939 3.399 8:28 30.855 3.386 10 32.7 30 0 157 100% mud1 3 11-May 8:55 31.06 3.658 9:15 30.968 3.755 11 29 26 0 246 100% mud1 4 11-May 9:40 30.702 3.951 10:03 30.684 12 36.9 33 0 150 100% mud2 1 11-May 10:33 31.105 4.23 10:56 31.256 4.023 10 23.6 19 0 471 100% mud2 2 11-May 11:22 31.037 4.769 11:42 30.924 4.75 10 31.6 31 0 212 10%reef 90% coral sand2 3 11-May 13:22 31.135 4.884 13:40 31.135 4.884 11 31.4 23 0 220 80% mud 20% reef2 4 11-May 13:54 31.327 5.133 14:16 31.273 4.951 17 24.6 23 0 348 80% mud 20% sand3 1 11-May 14:46 31.574 5.492 15:07 31.461 5.767 12 21.8 18 0 545 90% mud 10% reef3 2 11-May 15:37 31.543 5.975 15:59 31.486 5.767 16 21.9 19 0 395 90% mud 10% reef3 3 11-May 16:15 31.532 6.248 16:38 31.43 6.057 17 26.3 23.5 0 398 100% mud3 4 11-May 17:02 31.224 5.771 17:22 31.309 5.869 10 29 26 0 239 90% mud 10% reefcontinued

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon IslandsAppendix 2 continued.Location and GPSdatumSite Transect Date Time:startLat: startminLong: startminTime:endLat: endminLong: endminBottomTime(min)Max depth Depth (m):(m) min/avg/rangeNo.oysterscollectedTransect Bottom typelength (m)Kia 1 1 2-Oct 9:35 34.03 22.951 9:54 34.122 23.084 12 22 21 5 298 90%sand/shell 10% coral rock7° 34' S, 158° 37' E 1 2 2-Oct 10:09 34.108 23.093 10:28 34.136 23.238 12 23 21 1 271 90%sand/shell 10% coral rock1 3 2-Oct 10:41 34.136 23.238 10:53 34.236 23.352 12 26.2 23 2 279 80%sand/shell 20% coral rock1 4 2-Oct 11:08 34.238 23.357 11:27 34.304 23.557 12 25.5 23 2 387 90%sand/shell 10% coral rock2 1 2-Oct 16:33 33.537 22.635 16:52 33.672 22.852 12 30.7 29 9 470 100%gravel/rubble2 2 2-Oct 17:12 33.699 22.94 17:22 33.833 23.123 10 32.5 29 9 418 100%gravel/rubble2 3 3-Oct 9:17 33.467 22.487 9:34 33.369 22.291 12 26.9 23 5 403 100%gravel/rubble2 4 3-Oct 9:47 33.367 22.24 9:58 33.247 22.086 12 26.9 22 10 360 90%gravel/rubble, 10% rock3 1 3-Oct 10:34 33.427 20.732 10:50 33.438 20.854 10 31.5 30 0 225 80%mud, 20% reef3 2 3-Oct 11:04 33.436 20.854 11:23 33.493 20.977 10 34 30 0 249 80%mud, 20% reef3 3 3-Oct 11:33 33.501 20.972 11:43 33.464 21.097 10 29.8 28 0 240 70%mud, 30% reef3 4 3-Oct 12:06 33.389 21.171 12:25 33.431 21.341 11.5 24.8 22 3 322 50% sand/shell 10% reef, 40% mudWaghina 1 1 16-Oct 8:44 26.896 42.375 9:03 26.808 42.504 10 35.0 33 3 288 40%sand 60% coral cobble/garden7° 26' S, 157° 42' E 1 2 16-Oct 9:12 26.843 42.908 9:30 26.872 43.004 10 35.0 32 2 184 coral rubble garden1 3 16-Oct 9:43 26.773 42.946 10:00 26.813 42.98 10 34.2 32 4 97 30% sand, 70% coral rubble garden1 4 16-Oct 11:40 26.838 42.714 12:00 26.816 42.57 10 33.2 32 3 268 coral rubble garden2 1 16-Oct 12:38 28.486 41.764 12:55 28.212 41.925 11 24.1 18 1 587 70% coral rubble garden, 30% sand,2 2 16-Oct 15:18 28.629 41.655 15:36 28.416 41.775 12 22.0 17 0 452 80% coral rubble garden, 20% sand2 3 16-Oct 15:46 28.059 41.928 16:03 27.904 41.954 12 21.5 17 2 291 100% coral rubble garden2 4 16-Oct 16:15 28.711 41.547 16:32 28.89 41.391 12 22.2 20 0 438 70% coral rubble garden, 10% sand, 20%rock3 1 17-Oct 9:04 25.066 39.413 9:25 25.212 39.334 10 35.0 28 6 307 100% coral rubble garden3 2 17-Oct 9:50 25.331 39.474 9:50 25.389 39.6 10 31.7 29 8 255 100% coral rubble garden3 3 17-Oct 10:18 25.428 39.669 10:18 25.525 39.832 10 32.4 30 0 349 50% coral rubble garden, 50% sand3 4 17-Oct 11:34 25.114 39.722 11:58 24.985 39.584 8 40.5 35 5 348 100% coral rubble garden4 1 17-Oct 15:12 29.098 43.929 15:30 28.969 43.796 13 27.3 15 0 342 50% coral rubble garden, 50% sand4 2 17-Oct 15:40 28.914 43.884 15:50 28.833 43.909 10 34.0 29 0 157 80% coral rubble garden, 20% sand4 3 17-Oct 16:16 28.181 43.527 16:38 28.049 43.424 10 37.0 33 3 309 80% coral rubble garden, 20% sand

Abundance, Size Structure and Quality of White-Lip Pearl Oysters in the Solomon IslandsAppendix 3. Details of remote video transects undertaken at Malaita, Marau, Sandfly Passage, Kia and Waghina.Location and GPS Site Transect Date Time: start Lat: start min Long: start Time end Lat: end mon Long: end Bottom Time Depth range Transect Problems encountereddatumminmin (min) (m) length (m)Malaita 1 18-Apr 15:05 21.81 20.43 15:15 21.96 20.429 10 NR 277.89° S 161° E 2 20-Apr 11:51 20.588 21.568 12:35 20.936 21.83 44 NR 803.53 20-Apr 14:42 19.474 20.202 15:22 19.711 19.775 40 NR 896.8Marau Sound 1 25-Apr 13:20 49.711 50.331 13:50 49.497 50.21 30 NR 454.19° S 160° E 2 25-Apr 14:11 48.837 49.178 14:35 48.908 49.288 24 NR 240.6Sandfly Passage 1 1 8-May 8:25 59.808 5.709 8:35 59.959 5.755 10 38-41 292.08° 59' S, 160° 06' E 1 2 8-May 8:35 58.959 5.755 8:45 58.805 5.708 10 38-29 297.91 3 8-May 8:57 58.928 5.76 9:07 59.056 5.752 10 36.5-41 237.51 4 8-May 9:07 59.056 5.752 9:18 59.195 5.712 11 41.8-41 267.61 5 8-May 9:19 59.191 5.705 9:29 59.263 5.611 10 42.2-45.3 217.62 1 8-May 9:53 0.537 5.821 10:02 0.504 5.726 9 38-22.2 184.22 2 8-May 10:13 0.433 5.616 10:23 0.517 5.603 10 40-39.3 157.42 3 8-May 10:23 0.517 5.603 10:33 0.589 5.55 10 39-36 164.92 4 8-May 10:34 0.589 5.55 10:38 4 33.9-202 5 8-May 10:49 0.508 5.46 10:59 0.55 5.587 10 49.5-51 245.03 1 8-May 11:23 1.006 7.551 11:33 0.974 7.674 10 44.7-46.7 232.73 2 8-May 11:34 0.972 7.679 11:43 0.927 7.797 9 46.6-46.4 231.43 3 8-May 12:22 0.804 7.783 12:32 0.95 7.834 10 46.4-46.4 286.03 5 8-May 12:33 0.949 7.834 12:40 1.033 7.812 7 45.5-31 160.73 5 8-May 12:47 1.033 7.783 43.8 fouled at start3 6 8-May 12:59 0.936 7.73 13:09 0.898 7.607 10 44.6-48 235.73 7 8-May 13:11 0.91 7.595 13:21 0.797 7.566 10 48.5-52.8 215.9Kia 1 1 4-Oct 10:08 33.999 22.065 2 NR not recording7° 34' S, 158° 37' E 1 1 4-Oct 10:24 33.984 22.965 6 NR low battery termination1 1 4-Oct 11:08 33.983 22.973 11:23 15 NR new battery - low but working1 2 4-Oct 11:27 34.064 23.109 11:42 34.123 23.441 15 NR 619.41 3 4-Oct 11:43 34.123 23.441 11:58 34.214 23.63 15 NR 385.81 4 4-Oct 12:00 34.214 23.63 12:15 33.931 23.414 15 NR 657.3 battery issue, no record2 1 4-Oct 12:27 33.494 22.531 12:42 33.592 22.73 15 NR 408.02 2 4-Oct 12:43 33.606 22.67 12:53 33.549 22.56 10 NR 227.92 3 4-Oct 12:55 33.549 22.56 1:00 33.465 22.435 5 NR 277.3 battery issue, no record3 1 4-Oct 1:16 35.49 20.73 1:26 33.446 20.86 10 NR 252.2 new DVD3 2 4-Oct 1:27 33.446 20.06 1:29 nr nr 2 NR3 3 4-Oct 1:37 33.385 21.182 1:47 33.436 22.274 10 NR 1670.0 transcription errorWaghina 1 1 18-Oct 8:40 29.223 44.135 8:55 29.083 44.133 15 NR 259.37° 26' S, 157° 42' E 1 2 18-Oct 8:57 29.08 44.12 9:12 29.078 43.987 15 NR 244.31 3 18-Oct 9:14 29.071 43.983 9:29 28.951 44.001 15 NR 224.7 did not record2 1 18-Oct 9:49 29.075 41.444 x x x x NR abandoned2 1 18-Oct 9:59 29.053 41.41 x x x x NR abandoned2 1 18-Oct 10:14 28.527 41.738 10:26 28.329 41.831 12 NR 404.5 stop and start again when stuck2 2 18-Oct 10:28 28.329 41.831 10:37 28.191 41.897 9 NR 282.92 3 18-Oct 10:45 18:53 41.961 10:55 14:25 21:59 10 NR 354.22 4 18-Oct 11:05 26.899 41.998 11:13 x x 8 NR abandon - flipped4 1 18-Oct 12:05 26.316 42.108 12:20 26.488 42.28 15 NR 448.64 2 18-Oct 12:25 26.488 42.28 12:40 26.462 42.459 15 NR 332.2 did not record4 3 18-Oct 12:50 26.451 42.417 13:03 26.518 42.517 13 NR 221.6

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Draft, May 2008Appendix 4. Summary of the results of interviews with island communities.WaghinaWaghina emerged as the main historical centre for the gold-lip fishery. Historically, that is inthe 1970-1980 and briefly in 1990 prior to the ban, mother of pearl diving was an importanteconomic activity for many people. For many it was a full-time job. Local fishing wasconcentrated in the passage off of Kia, Hamilton Passage, from Tenbe to Tema, withconsiderable depths being dived for shell. Indeed towards the end of the fishery hookahdivers were operating to 70 m to collect shell, and many suffered decompression sickness asa result. Since the ban, occasional big harvests have still been made, with shell sold on toillegal exporters. MFMR have never had any involvement with the fishery, though weunderstand they did intercept one illegal shipment.Diving was best in the main passage (Hamilton Channel) but, due to currents, is onlyfeasible at neap tides (first and last quarter). Shell can be found on stony bottoms. Diversalso worked Kia and Ngosele Passage, in similar fast flowing channels, though at Ngoseleshell were also found on the muddy bottoms on the N side of the passage. In Ngosele, thebest areas are in the narrow channel, and in Kia the best area is reported as the channelrunning towards Wagina from Kia town.The dominant substrate where shell are found is crushed coral, and shells can be heavilycolonised, with older shell scarred on the inside. Best quality shell, ie least scarred, wasfound on sandy areas of lower flow, and smaller shell were least scarred. Shell was generallyeasy to find, and the divers report that there is plenty out there at the moment, thoughimmediately after the ban very few could still be found.KiaMoP was of lesser importance to Kia than to Waghina, where most local divers were maskdivers only, and few had access to hookah gear. It was important to a few people, and oflow importance to many. Most divers were Gilbertese from Wagina, and local peopleinvolved full time in the industry were usually canoe operators. Breath-hold divers stillencounter shell, at shallow depths and on a variety of substrates from mud to broken coral.Historically, most activity was in the fast flowing channels, which could only be worked onneap tides. Swirling areas were the best places to fish, as shell seemed to be concentratedthere, with fewer shells in the channel centres. Close to inflows from mangrove areas wasalso good and close to the groups of small islands. The small channel at Kakadeke also holdsgoldlips at 10-20 m. Nowadays, when breath-hold divers encounter goldlip they will oftencollect them and bring them into shore, to keep close to their houses in case they becomesaleable again. Shell are found on sand, mud, coral rubble, seagrass, even rock walls. As atWagina, small shell was less scarred and better quality than large shell.Marovo (Telina/Mbili)Not such an intense industry here, but of some value to some people in the past. Goldlipsare seen in almost every channel between the islands, at 20 m plus, and at times in goodnumbers. The shell is on sand/mud and rarely are badly scarred. Some locals still use shellfor carving (inlay/jewellery). Telina is in an area of quiet currents and can be worked at anytidal condition. Mbili Passage, where a strong exit/entrance current exists with a stonysubstrate is also reported to support GL, including in nearby 30 m deep channels. Fisherieshave been involved here in that they came to advocate the deployment of BL spat collectors,though nothing came of this, and there is no fisheries involvement yet with goldlip.MarauThe Ecology Lab Pty Ltd – Marine and Freshwater Studies

Abundance, Size Structure and Quality of Silver-lip Pearl Oysters in the Solomon Islands Draft, May 2008In Marau the pearl oyster industry was important to the economies of many people, thoughfor all it was a partial living only. A mix of mask, hookah and SCUBA diving has beenundertaken there, more or less dominated by the local people. Shell is still collected in smallamounts and is used and sold locally, mostly for jewellery and shell money; it hastraditional values for this. The shells are widespread and people report taking them fromlagoons, passages and open water. Depth limits result in the slopes of the passages beingfished rather than the central areas. Good locations include the shallow Suukitahi Passage,the slopes of the passes between the islands. A new area was recently discovered NE ofTaiaru Reef.NgellaTwo main areas were identified to us, Sandlfy Passage and Mboli passage. Mboli Passagereported the shell as providing a partial living to many people and that it was important.Both mask and hookah diving were carried out, by locals as well as outsiders, thoughcommercial buyers dominated the outside influence. Some shell is still taken here for localuse. Shell are found in the passage itself, but some interviewees said also in the water at thenorthern end of the passage, to both east and west where it spills out into the open sea;others reported that these were not good areas. Mboli Passage itself is the only site nowfished, with shell beginning part way up the passage (from Honiara end) just past a rockypoint favoured by sunbathing crocs. Small shell are found right up to the mangroves. Noshell are apparently found at the southern part of the passage, nor where this opens to thesea, but it might be worth a quick look to confirm this.Sandfly passage is deep in the centre and most shell is taken in the bays and slopes to northand south. Here interviewees suggested that shell was moderately to highly important tothe community, though fishing was by mask only by those that were spoken to. This limiteddivers to shallow water. Some people still take shell here for local use. The favouredlocations were all around Mbike Island and the promontory to the north of this (HanipanaPt) and the shallow water area to the north of this might be worth a look. Two Bays,Roderick Dhu Bay and Haroro Bay were also identified as good sites. Respondents here alsoreported that shell are to be found in two passages NW of Sandfly, Hanesavo Harbour andthe passage running NE/SW to the E of Mangalonga Island.Maramasike (Malaita)This preliminary survey was undertaken by Fisheries staff and was less comprehensive thanthose undertaken by WorldFish staff. A picture emerges of a breath-hold capture industrythat was of moderate importance to a few people. Only locals were involved, and breathholddepth limits apply. Currently there are no commercial activities, though oysters arestill seen and when caught, there is a local market for shell. Not clear form responses, butthis may again be for shell money and jewellery. Three villages were canvassed, and threeareas are identified on the east and west sides of the northern mouth of MaramasikePassage, but with insufficient detail to define sites at this stage.The Ecology Lab Pty Ltd – Marine and Freshwater Studies

Report on an EU project grant to the WorldFish Center and the SolomonIslands Ministry of Fisheries and Marine Resources.Stimulating Investment in Pearl Farmingin Solomon IslandsReport 5. Solomon Islands: The Investment Climate forPearl FarmingPrepared by:A.V. HughesVonavona LagoonPO Box 59,GizoSolomon Islands1

Stimulating Investment in pearl farming in Solomon IslandsReport 5. Solomon Islands: The Investment Climate for Pearl FarmingContentsContents................................................................................................................................................... 21. Governance and political stability....................................................................................................... 31.1 Constitutional government ............................................................................................................ 31.2 Judicial system .............................................................................................................................. 31.3 The public service ........................................................................................................................ 41.4 Political parties and factions......................................................................................................... 41.5 Provincial governments................................................................................................................ 41.6 The ethnic conflict of 1998-2003 ................................................................................................. 51.7 Role of RAMSI ............................................................................................................................ 62. Currency and financial stability ......................................................................................................... 62.1 Currency and exchange rate ......................................................................................................... 62.2 Financial system and interest rates............................................................................................... 72.3 Government finance ..................................................................................................................... 82.4 External aid .................................................................................................................................. 83. Land tenure......................................................................................................................................... 93.1 The registered tenure system........................................................................................................ 93.2. Customary tenure ....................................................................................................................... 103.3 Relevant location of government-owned and other existing registered lands............................ 113.4 Reefs........................................................................................................................................... 114. Transport and telecommunications .................................................................................................. 124.1 Land transport ............................................................................................................................ 124.2 Sea transport............................................................................................................................... 124.3 Air services................................................................................................................................. 124.4 Telecommunications .................................................................................................................. 125. Security of investments .................................................................................................................... 135.1. Physical security......................................................................................................................... 135.2. Security of registered leaseholds................................................................................................ 135.3. Protection against expropriation................................................................................................. 146. Forms of co-investment.................................................................................................................... 156.1 Partnerships and incorporated joint ventures ............................................................................. 156.2 Specific terms of lease................................................................................................................. 156.3 Participation through out-grower operations.............................................................................. 157. The investment approval process ..................................................................................................... 168. Taxation and incentives.................................................................................................................... 178.1 Direct taxation: business tax....................................................................................................... 178.2 Direct taxation: personal income tax.......................................................................................... 178.3 Indirect tax.................................................................................................................................. 178.4 Incentives ................................................................................................................................... 189. Licence under the Fisheries Act, 1998 ............................................................................................. 1810. Labour laws .................................................................................................................................... 1910.1 Foreign workers....................................................................................................................... 1910.2 Wage structure and legal minimum wage ............................................................................... 1911. Provincial government business licensing...................................................................................... 1912. Environmental impact assessment.................................................................................................. 2013. Contacts on investment matters...................................................................................................... 202

1. Governance and political stability1.1 Constitutional governmentThe constitution of Solomon Islands was adopted at independence in 1978 after a countrywideconsultation process. Its broad structure is similar to those of other former Britishdependencies. Currently the head of state is the British monarch, represented by agovernor-general elected by the SI parliament. The constitution establishes the nationalgovernment and requires it to make legislative provision for establishment and operationof provincial governments, of which there are currently eight. An elected municipalgovernment of the capital, Honiara, is established under a separate law.A draft replacement constitution now under review by a constitutional congress providesfor a non-executive president as head of state, and for a federal structure with stategovernments replacing the present provincial governments. The draft new constitution isexpected to be ready for adoption by the end of the present parliament in 2010.The fifty-member single-chamber national parliament is elected every four years. Alladult Solomon Islanders are eligible to register as voters and vote in a first-past-the postballot. Elections since Independence have usually produced a substantial turnover inparliamentary membership. Recent governments have been seeking to make their tenureof office more secure by channelling development grants to constituencies throughmembers of parliament, particularly those who support the government.Parliament elects a prime minister who forms a ministerial government from members ofparliament. The need to maintain political support in parliament has led to creation ofmore ministerial posts than efficient administration requires, and the preservation ofsolidarity within the government and its parliamentary supporters is a constantpreoccupation of the prime minister and an inner political caucus.1.2 Judicial systemThe formal judicial system comprises magistrates, courts, the High Court of SI, and aCourt of Appeal. The judiciary is constitutionally independent and is generally thought tobe free of political influence, though at provincial level this may be harder to sustain.Governments have on the whole submitted to the rule of law when required to do so, butnot without visible internal strains. Generally in SI there is a high level of respect for thelegal machinery and the use of due process. Very public controversy over the filling of theAttorney General’s position in 2006-7 by a close friend of the prime minister led to aparliamentary vote of no confidence and change of government in November 2007.The judicial process is generally regarded as slow but fair. The enforceability of civiljudgements is a weak area. The system of native courts that apply customary law todisputes between Solomon Islanders is effective in some areas but not others, dependingon the degree of confidence placed in the traditional system by people of the area. Theinterface between customary law and the statute law enforced by the formal court systemis under strain as monetisation and commerce penetrate more deeply into people’s lives.3

1.3 The public serviceThe national public service has undergone substantial expansion and qualitative changesince independence. It has suffered from increasingly direct political interference in itsmanagement and has been severely weakened by corruption in departments dealing withtaxation, contracting, licensing, access to forests and marine resources and transactions inpublic land. Efforts are now under way to re-establish codes of professional ethics andraise standards of administrative and technical competence.The departments with which an investor would mainly be dealing (investment registration,taxation, employment, immigration, lands, fisheries, provincial government) are allostensibly aiming to promote and assist legitimate investment, but they vary inexperience, effectiveness and speed of doing business. Investors should ensure thatdocuments are carefully prepared and presented, and sufficient time allowed forprocessing and discussion of any difficulties with relevant officials. Any suggestion thatadditional unofficial payments would facilitate processing should be rejected.1.4 Political parties and factionsBefore and since independence, officials and political leaders have been conscious of therisks posed to nation-building by the potential for inter-island conflict. Deliberate effortshave been made to avoid forming political parties on ethnic or island bases. As there arefew other themes that could unite people outside the kinship of their own extendedfamilies or land-holding groups, political parties have generally been weak, taking theform of short-term clusters around a potential or actual prime minister in expectation oftangible rewards. These allegiances have been fragile, depending on the perceived benefitsof the sharing-out of political power and financial patronage, and often attacked.This environment produces frequent speculation about the stability of the government inoffice, and has several times led to a change of government during the life of aparliament—the most recent being that in November 2007. From an investor’s viewpoint,however, there are few discernible policy differences among the various politicalgroupings. The differences are mainly about who should be prime minister and in chargeof patronage, while external relations with China/Taiwan and Australia are also a matterof debate. Major shifts of policy affecting or relating to foreign investment seem unlikely.All parties claim to be in favour of decentralised investment, creation of rural jobs andincome opportunities and increased export earnings. Pearl farming scores well all round.1.5 Provincial governmentsSub-national or island-level governing bodies, earlier known as local councils and morerecently as provincial assemblies, have been established for almost fifty years, to exercisepowers and functions devolved and delegated to them by the national government. Thesegovernments are elected by all adults on the same electoral roll as the national parliament.In the last twenty years provincial governments have been chronically under-resourcedand under-performing in provision of services and infrastructure, and in stimulating orsupporting development. Rivalry with national politicians and the difficulty of staffingservices in remote locations have been key factors in this decline.4

Despite its present weaknesses, effective sub-national government at island level is crucialto providing a secure environment for rural business. Steps are being taken now withinternational assistance to rebuild competent provincial government able to maintain closetouch with rural communities. In the background are the constitutional review process andthe possibility that provinces may become states in a federal system.In any case, commercial investors in rural locations will need to maintain good workingrelations with provincial or state government at political and official levels. Timelyconsultation in planning, legal compliance and transparency of dealings are critical.1.6 The ethnic conflict of 1998-2003The ethnic 1 fragmentation of the country acts as a brake on economic development, butpolitically it has also tended to act as a stabilising factor—it has been difficult to build acritical mass of support for radical policies that would be positive or negative fordevelopment. This appearance of multi-ethnic stability suffered a severe blow in 1998-2003 with the eruption of violent conflict and subsequent establishment of gun-rule inHoniara, Guadalcanal and parts of Malaita, and intermittently in Western Province.Known as ‘the tensions’, the upheaval was specifically triggered by extremist elementsfrom Guadalcanal, who tapped into a pool of dislike and mistrust over inward migrationand settlement, particularly from Malaita, and resulting unresolved disputes over land thathad grown up in North Guadalcanal over several decades. Successive governments hadfailed to intervene in any significant way despite being asked many times to do so.The disastrous outcome included an estimated two hundred violent deaths, physical andmental suffering and loss of property for many thousands of people, the collapse of theethnically-split police as a disciplined force, and the overthrow of the elected governmentin an armed coup in June 2000. Though a peace process was initiated by civil society andexternal assistance, and a general election was successfully held in late 2001, it was notuntil June 2003 that the rule of armed gangs and their leaders was ended (next section).The most sustained violence occurred in Guadalcanal between persons from that islandand from Malaita, the latter armed and assisted by Malaitan police. At the same time morewidespread violent incidents and the broad psychological trauma of the conflict had adestabilising effect in other parts of the country. The damage to ethnic ‘neighbourliness’and sense of nationhood has been substantial. Continued population growth and migrationfrom the more populated and resource-poor islands (Malaita, Reef Islands) to those withmore space and possibility of work (Guadalcanal, Isabel and the New Georgia group)mean that the risk of further ethnic violence cannot be ignored.Investors in rural areas need to be aware of this history. They need to actively foster goodrelations with neighbouring communities, maintain an ethnic composition in theirworkforce that minimises friction, and be alert for signs of tension in and around theirinvestment so as to identify its causes and organise ways of alleviating them. There areseveral examples in the tourism sector of investments that have successfully done this, andthey are worth studying. They tend to be on a similar scale to a potential oyster farm.1 In current Solomon Islands’ usage ‘ethnic’ more often refers to island or language group identity than to race.5

1.7 The role of RAMSIIn March 2003, under the terms of a resolution of the Pacific Forum (the BiketawaDeclaration) the SI Prime Minister requested external assistance to deal with armedlawlessness and associated mounting social and economic distress. The RegionalAssistance Mission to Solomon Islands (RAMSI), organised and largely funded byAustralia, arrived in June 2003. This put an immediate end to the rule of armed gangs andin the following months large quantities of small-arms were surrendered and destroyed.The basic functions of government were progressively restored, public services resumednear-normal levels of activity and the ‘peace process’ accelerated.In 2004-6 a large number of aid-funded activities were put in place with the aim ofrebuilding national capacity to deliver services, build and repair infrastructure andmaintain law and order. Many components of these programs represent long-termcommitments, and linkages to normal bilateral and multilateral aid programs involvingother donors have been and are being developed. A transition from emergencyintervention to deeper-rooted, longer-term building of local capabilities is occurring.RAMSI itself will be reviewed early in 2009. Public confidence in national capacity tomaintain law and order was destroyed in 1998-2003, and remains very low. A contingentof Australian and other regional police remains in support of the SI police, and a militaryrapid-response presence is maintained in the background. It is widely hoped and expectedin SI that the core assistance programs underpinning public security, policing andcontainment of violent crime will be extended for a further ten years, in the context of acoherent plan to develop national capacity to re-assume responsibility for security duringthat period. The current SI government and governments of key RAMSI countries havebeen signalling their potential support for such an agreement.2. Currency and financial stability2.1 Currency and exchange rateThe national currency is the Solomon Islands dollar (SBD). The current official exchangerate is about SBD7.70 to USD1.00, or SBD7.00 to AUD1.00. The exchange rate againstUSD is set by the Central Bank in its daily transactions with the commercial banks, whichthen deal with the public in a range of currencies by applying competitively-set margins tothe CBSI rate.The Central Bank determines the value of the SBD by reference to a basket of currenciesthat reflects the composition of SI’s external trade. Exchange rate policy is agreedbetween CBSI and the government. Broadly the policy aim has been to maintain a level ofexternal reserves equivalent to three months’ imports of goods and services, and protectthe competitiveness of domestic production and rural-based export industries.Faced since the mid-1980s with mounting government budget deficits and erosion ofexternal reserves by resulting import expenditures, the SBD was progressively depreciatedfrom parity with AUD at Independence in 1978 to around SBD7=AUD1 today. Since2004 the external reserves have been boosted by heavy grant-funded inflows associatedwith RAMSI and other aid programmes, creating a surplus on the overall balance of6

payments, but the authorities have not increased the exchange value of the SI currency—which would have increased consumption of imports and undermined local productionand exports. Recently the level of reserves has been heading back to the CBSI’s targetzone of three months import cover. The prospect of declining export receipts from thelogging of natural forest (offset in part by lower logging-related imports of fuel,machinery and skilled personnel) and higher domestic inflation threatening exportcompetitiveness suggest the likelihood of future pressure on the exchange rate.2.2 Financial system and interest ratesThe formal institutions making up the financial system include the Central Bank ofSolomon Islands (CBSI), three commercial banks (ANZ, Bank of South Pacific andWestpac), the PNG-based Credit Corporation and several hundred credit unions. CBSI hasthe normal currency issuance, external reserves management, and financial institution andsystem supervisory responsibilities of a central bank.The commercial banks operate branches in Honiara and provincial centres, and ATMs areavailable at or near most of the ANZ and Westpac branches. ANZ operates mobile bankfacilities along parts of the road systems of North Guadalcanal and North Malaita.Currency in circulation and demand deposits with banks are presently around SBD900m,and savings and time deposits around SBD450m. Domestic lending, almost entirely to theprivate sector, is around SBD1000m and net foreign assets (external reserves) are aboutSBD700m, equivalent to USD90m.The banking system is reasonably liquid, and able to handle expected domestic demandfor financing of commercial development. The banks have access to head office funding ifneeded. Interest rates at commercial banks are in the range of 1-4% for term deposits,depending on term and amount; and 13-18% for loans, depending on term and amount, thesecurity available, and the reputation and business prospects of the borrower.Domestic inflation, estimated by the Central Bank on the basis of Honiara retail prices,has recently been accelerating under the impact of imported fuel and food price rises. Theannual rate of inflation is now in the range of 12-15% and may be going higher. Theannual rate should drop back into single figures after the main ‘drivers’ of the currenttrend stabilise, though it is not likely that the recent fuel price rises will be reversed.2.3 Exchange control and suspicious transactions reportingThe Central Bank operates exchange control regulations under which authority to approveand process routine trade transactions is delegated to commercial banks. Authorisedexporters are allowed to retain funds offshore to pay for imports to minimise inward andoutward transaction costs.Capital movements require Central Bank approval, which is readily given on proof oflegal status and availability of funds, eg repatriation of declared dividends or of capital onsale of an investment. Anti-money-laundering legislation requires banks to reportsuspicious transactions, and customers may be required to provide proof of their identityand nature of transactions.7

2.4 Government financeThe national government obtains just over half of its annual budget from domestic taxrevenues and the balance from external sources, almost all as grants. Domestic revenueshave grown strongly in recent years as the effectiveness of tax collection has improvedand the level of taxable income and expenditure flows in the economy has increased. Boththese factors are connected to the impact of foreign assistance under RAMSI and other aidprogrammes. No systematic analysis of the economic and fiscal impact of the upsurge inaid-funded expenditures has been published, but it has certainly been very significant,particularly in the urban sector. The other striking driver of revenue growth has been theexpansion of log exports in volume and value (along with clear evidence that both havelong been substantially understated by the exporters) roughly doubling between 2005 and2007.The government has recently released a statement of medium-term fiscal strategy whichenvisages a much tighter budgetary future. This is attributed mainly to the expectedcontraction of natural forest logging over the next five years as the remainingcommercially attractive stands of timber are exhausted, and logging-based activityshrinks. The Honiara service economy, the rural areas where logging has been takingplace and the government will all experience a fall in money income. At the same timeexpenditure pressures on the budget will increase, largely driven by population growth,government commitments to accelerate development of rural areas, and the demands ofthe political and official payrolls as the cost of living rises.Though the government budget is expected to become more stringent, an incominginvestor is not likely to be directly affected by fiscal tightening. As explained in section 7below, the current scheme of investment incentives contains no grants or other paymentsby government that might be cut back. Pressure to create and maintain an environmentconducive to investment will be kept up by domestic and external advice, and theimprovement of economic infrastructure will continue under various aid programmes.The economic and social value attributed to potential investment in pearl farming will beenhanced by the contraction of natural forest logging, which has caused immense damageto the natural environment and community relationships, while corrupting substantialelements of the political and official machinery of government.2.5 External aidSolomon Islands has increased its dependence on external assistance in recent years andthis looks set to continue. The re-emergence in SI and elsewhere of donor funding of partsof the government recurrent budget is a recognition that effective public services have tobe assured in order for investment-driven growth to occur on a sustainable basis.The Australian regional aid programme is being significantly increased in size and SI willbe a major recipient through the bilateral programme and RAMSI. New Zealand will alsomaintain and strengthen its aid to SI, directly and through regional bodies.The rivalry of China and Taiwan for the allegiance of Pacific states has enabled SIgovernments to obtain substantial untied (and only very lightly accountable) aid fromTaipei, usable for political purposes shunned by other donors. Though this rivalry is likely8

to recede and presumably vanish under any foreseeable Beijing-Taipei scenario, there isno reason to think that substantial Chinese aid will not continue to be available.The World Bank Group is opening a country office in SI so as to make its money andadvice more readily accessible, and the Asian Development Bank is paying increasingattention to SI’s situation and needs. The European Union seems uncertain about its longtermrelations with the Pacific, but for the present the EU’s development agencies,including the EIB, are actively engaged and committed to multi-year programmes in SI.All this is positive for commercial investment. It provides assurance that regional andinternational agencies will be physically present in SI, arguing the case and providingresources for better infrastructure and services, trade expertise in key institutions and aregulatory regime that attracts quality investment and assists it to commercial success.3. Land tenureLand in Solomon Islands is held either under customary tenure, or under a system ofregistration of land and defined interests therein established by the Land and Titles Act.By far the greater part of Solomon Islands is customary land, and customary rightscommonly extend to neighbouring reefs and inshore fishing grounds3.1 The registered tenure systemRights of ownership, occupation and use of registered land are recorded in the LandRegister, maintained by the Registrar of Titles, and land boundaries are recorded in theRegistry Map maintained by the Surveyor-General. The system covers about 10% of theland in Solomon Islands. This includes all the urban centres, several hundred parcels ofland in rural areas formerly known as alienated land, a small number of parcels convertedfrom customary tenure by a process known as land settlement, and a growing number ofparcels acquired by the Commissioner of Lands for purposes of development or otherpublic purposes. All land on the register has gone through a process of title and rightsinvestigation before being registered, and the interests in registered land recorded on theLand Register are the subject of indemnity by the government.The principal forms of registered interest are the perpetual estate, fixed term estate, leaseand charge. Rights of way and easements such as access to water and other natural assetsare also registrable as encumbrances on the registered right to occupy and use the land.a) a perpetual estate broadly corresponds to a freehold interest in European usage.The perpetual estate in a parcel of land can only be held by the Commissioner ofLands or by a Solomon Islander (as defined in the Land and Titles Act), acompany at least 60% owned by Solomon Islanders, and certain other limitedclasses of persons. Broadly speaking, ‘government land’ is held by theCommissioner as perpetual estate, and in coastal parcels the title extends to thehigh-water mark. The Commissioner may transfer the perpetual estate to eligibleperson(s) and may make this subject to payment of premium, rent andperformance conditions.b) a fixed-term estate may only be granted by the Commissioner of Lands, and fornot more than 99 years. It is generally similar to a leasehold interest in European9

usage. There is no restriction on who may be granted a fixed-term estate, andalmost all urban land and large tracts of rural land (eg for plantation forestry andagriculture) is held in this way, subject to rent and development conditions.c) a lease may be granted by owners of perpetual and fixed-term estate other than theCommissioner of Lands (who may grant periodic tenancies but not leases). Thenature of a registered lease and the conditions that may be attached are generallysimilar to leaseholds in European usage. A lease may be for any period up to thelife of the estate interest, but the written consent of the Commissioner is requiredfor a lease to a non-Solomon Islander.d) a charge in respect of a registered parcel of land corresponds to a mortgage inEuropean usage. Charges may be created and registered as encumbrances onestates, registered leases or other charges. Commercial lenders are accustomed tothe use of a registered charge as security for lending to owners of fixed-termestates and leases, particularly in urban areas, and the process is well established.3.2. Customary tenureNon-Solomon Islanders (as defined in the Land and Titles Act) cannot legally owninterests in customary land, so any proposed formal investment on customary land willinvolve its conversion to registered land. Problems of definition of customary land rightsand boundaries so as to facilitate development by traditional owners, and efforts toconvert customary rights to a form in which they can be registered and dealt in under theregistered title system, have been going on intermittently for more than forty years, and noproven system is yet in place.Customary use rights encompass all the uses of the land and its resources traditionallypractised by groups of horticultural island-dwellers fairly lightly scattered through SI. The‘bundle of use rights’ that best describes customary ownership is commonly claimed by akinship group (or tribe) of several hundred persons, tracing descent from a named ancestorten or more generations ago. Such claims may have been subject to dispute as to preciseboundaries by neighbouring descent groups, sometimes for long periods.Monetisation, education and the physical and financial impact of commercial logging ofthe natural forest have injected deeply disruptive forces into customary society.Traditional leadership in many areas has crumbled under these pressures leaving tribalgovernance in disarray. The traditional structures in Isabel and Shortlands appear to be inbetter shape than elsewhere, but everywhere caution, tact and patience is needed inapproaching the possible use of customary land for commercial investment.Machinery exists under the Land and Titles Act (Parts IV and V) for the conversion ofcustomary to registered ownership of land. Properly done, these involve painstakinginquiry into traditional use rights and the degree of understanding and readiness amongthose concerned to convert to the registered system. Part V provides for the Commissioneror a Provincial Assembly to acquire a registered perpetual estate in a parcel of customaryland (whereupon it ceases to be customary land) and then to transfer the perpetual estateto the original customary right-holders. They can then deal in it as registered land, forexample by subdividing it and granting leases to themselves or outside investors forresidential or other purposes.There has been a recent upsurge of activity under Part V in connection with governmentplans to establish large-scale enterprises in remote rural areas, but the sustainability of the10

outcome is far from certain. There have also been smaller acquisitions for privatedevelopment (via transfer by the Commissioner or the Provincial Assembly to localdevelopers). If all goes smoothly in such cases the process should take about six months,but here too the longer-term outcomes of existing acquisitions are not yet clear because ofquestions about the quality of the investigative process.As well as going through a ‘due diligence ‘check and the appropriate formal proceduresfor acquiring a registered interest in land, a prospective investor would want to bethoroughly assured of local acceptance of the proposed investment through a painstakingprocess of getting acquainted with local leaders and communities and reading up localhistory. Commercial investment on unregistered land by a non-Solomon Islander wouldbe insecure and is not recommended.3.3 Relevant location of government-owned and other existingregistered landsIn these circumstances it probably makes sense, at least while proving the commercialfeasibility of a pearl industry investment, to explore the possibility of using land that isalready registered, and has been or is now in use for some form of economic activity.Such lands exist in the following locations:− Shortlands (Ballalae airstrip), Gilbertese resettlement, close to Bougainville− Vaghena, Gilbertese resettlement, Kagau (airstrip), access to Manning Strait− Manning Strait islands− Suavanao (airstrip)− NW Isabel coastline, Allardyce Harbour− Reef islands southeast of Gizo, including Nusatupe (Gizo airport, WorldFish base)tourist resorts and Gilbertese resettlement− South Vona Vona lagoon (Munda airport)− NW Marovo lagoon reef islands (Ramata) (airstrip)− The major part of the Marovo lagoon appears to have been extensively affected bysediment run-off from logging on New Georgia and Vangunu− SW Marovo lagoon (Uepi, Seghe) (Seghe airstrip)− Russell Islands (Yandina airstrip)− Sandfly Island and passage (Maravari)− Marau Sound, East Guadalcanal (airstrip) (shell jewellery, corals, Ian Gower)(Tavanipupu resort)− Santa Ana (East Makira)These locations will be indicated on the map of SI included in the brochure. Visits will bearranged to some of the most accessible sites where it is believed conditions may makepearl farming technically feasible.3.4 ReefsLand as defined in the Land and Titles Act includes land covered by water (though notminerals or ‘substances in or under land’ that are usually obtained by mining or surfaceworking). Most interests in registered land are defined to end at the high-water mark, but11

if customary rights extend over reefs adjacent to customary land being acquired by theCommissioner or Provincial Assembly for transfer of the perpetual estate to the customaryowners, in the manner already described, it appears that those rights could be included inthe perpetual estate and be subsequently leased to an investor.4. Transport and telecommunications4.1 Land transportThere are no road bridges between islands, and most of the potential mariculture sites arenot on the intra-island road systems that do exist on North Guadalcanal and Malaita andto a lesser degree on Makira and Choiseul.4.2 Sea transportFrequent and busy shipping services operate between Honiara and ports in RussellIslands (Yandina) and Western Province (Marovo ports, Munda, Noro, Gizo andShortlands). Isabel is also well served, Choiseul and the eastern provinces less so.Vessels in service include several landing barges and express passenger craft. There isstrong competition for freight business and rates are keen.Transhipment of freight from rural ports to remote locations is mainly done by 6-8mfibreglass open boats or large wooden canoes powered by 25-60hp outboards.4.3 Air servicesThe government-owned airline Solair operates three 20-seat Twin Otter STOL aircraftand one 8-seat Islander. There are two scheduled flights most days to Western Province,going on twice a week to Choiseul and Shortland, daily flights to Auki and Malaita andtwice a week to Makira. Fares are competitive with other domestic operations in theregion, but the aircraft have limited cargo capacity and care is needed to ensure thaturgently needed spare parts, for example, don’t get off-loaded in favour of surfboards. Alocally-based helicopter is used mainly by minerals prospectors but is also available forother charter work.4.4 TelecommunicationsThe national telecommunications provider Solomon Telekom Limited (trading as ‘OurTelekom’) is a licensed monopoly, majority owned by the national superannuation fund.It provides landline services at Honiara and urban centres, mobile phone services at thelarger centres and satellite links for international communications. Though the businessis very profitable, user costs are high by international standards and service quality andtechnical support are not highly regarded by customers.Public opinion for some time has favoured opening the sector to competition. Externaladvice (eg, World Bank, ADB) agrees, and the government is now committed to it. Theexpectation is that this will lead to lower prices and better services, as has been the casein other Pacific island countries with a similar telecommunications history. With the12

existing links, at locations within 25km of main centres (equivalent to an hour’s journeyby fast boat) an investor would be able to establish voice and internet communications.5. Security of investments5.1. Physical securityIn rural locations in SI physical security depends on a combination of factors. Regularpatrolling by the police is simply not available. An investor with portable assets to protectneeds to take clear and non-provocative precautions against theft that are understood andaccepted by neighbouring communities. Physical demarcation of boundaries byagricultural-type fencing, constant presence on the property of employees whose dutiesinclude regular inspection of perimeter fences etc, secure lock-up of offices, laboratoriesand storage of portable tools, outboard motors and other valuable items are obviousprecautions, as is not keeping large amounts of cash on the property.Oysters growing in a demarcated reef area as part of a pearl farming project would be thesubject of common knowledge and interest in the area, and an important component in thesecurity arrangements would be the attitude of people in neighbouring communities.Strangers are readily spotted and reported. If local residents feel they have a stake in thecommercial success of the pearl farm and thus an interest in its physical security—whichincludes not stealing its stock themselves—this greatly reduces a significant area of risk.5.2. Security of registered leaseholdsRegistered leasehold interests in land, including land below the highwater mark, egadjacent areas of reef, will be legally secure provided the appropriate procedures under theLand and Titles Act have been followed. As already mentioned, persons registered asowners of interests recorded in the land register are indemnified against loss arising fromrectification of any defect discovered in their title. They are entitled under the general lawof SI to assert and defend their rights to occupy and use land in ways appropriate to theirregistered interest.It is still the case, though, that good relations with local communities are crucial tosuccessful operations in rural areas. It would be impracticable to make and operate anagricultural or maricultural investment in a rural setting in a hostile social environment. Itwill be necessary to make sure that local communities know and understand what isproposed, that the operation is designed to provide as much participation for local peopleas is reasonable and practicable, business transactions with them are transparent, on fairterms as to prices and quality, and are properly recorded.When the business grows, the local stakeholders will need to feel that they can share partof that growth. If the business experiences harder times, aspects of these can be fairlyshared too provided the reasons are understood. This will not be news to persons who arealready successful investors in other Pacific islands, but it is important not to lose sight ofthis aspect of security in promoting the prospect abroad.13

5.3. Protection against expropriationThere no history in SI (or the Pacific islands generally) of expropriation of commercialinvestment. Governments have shown a clear understanding of the damage such actionwould do the country’s chances of attracting further investment. SI subscribes to theAPEC principles on non-expropriation and is a member of the Multilateral InvestmentGuarantee Agency, part of the World Bank Group of institutions, which provides financialguarantees against expropriation of foreign commercial investments by host governments.There is no significant expropriation risk to a possible pearl farming investment that isconducted in a commercially and legally conventional manner.14

6. Forms of co-investment6.1 Partnerships and incorporated joint venturesThere are several legal forms of joint enterprise, in which two or more persons share thecosts and benefits of the business in ways they decide and record in a formal agreement.Professional groupings (lawyers, doctors, accountants) often take the form of partnerships,in which responsibility for group income, expenses and profits is shared according to adetailed partnership agreement. That does not seem to fit the likely circumstances of apotential pearl farm in SI. A possible preliminary period of collaboration and knowledgetransfer between WorldFish at Nusatupe and an incoming investor in pearl oyster farmingwould most likely lead to the investor moving to a separate location to establish thecommercial operation.A form commonly used for business ventures in SI involving substantial fixedinvestments and the sharing of costs and benefits between public and private sectorentities is the formally incorporated joint venture. There is no obvious public sector coinvestorfor a private investor to team up with, but there is a possibility of an establishedmariculture business joint-venturing with an incoming pearl farm investor. In that case theformal structure of their collaboration would be developed by them with their own legaland accountancy advisers6.2 Specific terms of leaseAs noted earlier, the participation of local communities stakeholders, particularly thekinship group or groups owning rights to land and/or reef areas to be included in theoyster farm and shore base, may be crucial to a successful long-term investment. This maybe initially achieved by the terms of the lease to the pearl farm owner/operator, whichwould be implemented after the Commissioner of Lands had acquired the perpetual estateand transferred it to the appropriate kinship group(s).Here, a rent structure may be negotiated that recognises the high risk and relatively longlead time that characterises a pearl oyster project, but provides for a significant increase inrents as and when commercial viability is achieved. Payment of an agreed share of grosssales and/or gross or net profits (with deduction before ‘net’ clearly defined) may beagreed on top of an ‘unimproved value’ fixed rental payment . There are many precedentsfor such successful agreements in the field of tourist hotel and resort development, andcompetent independent advice to the kinship group(s) concerned could readily bearranged.6.3 Participation through out-grower operationsDepending on the form of operation chosen, which will depend on the method of oysterculture that appears to investors to be best suited to SI circumstances, participation in thepearl farming project may take the form of collection and sale of juvenile oysters to acentral farm, where they are grown to seedable size, implanted with the prospective pearlnucleus and all being well are harvested after about two years. Outgrower rearing ofoysters to seedable size and the seeding of oysters in outgrower farms seems likely to be a15

later development, but could come earlier if the scientific, land tenure and commercialfactors affecting viability come together in a favourable way. Any of these forms ofparticipation require clear definitions of oyster sizes and conditions, standards andmethods of caring for the growing oysters, and transfer techniques and valuationmethodology if oysters are to be relocated before harvesting of pearls. A prospectiveinvestor is likely to have relevant experience and preferences that would be critical indeciding the form of local participation in the risks, costs and benefits of any operation.7. The investment approval processThe initial procedure for obtaining the necessary approvals for investment in SI has beenmuch simplified by the Foreign Investment Act, 2005. Previously applications forinvestment approval were considered by a Board, which was often the cause of delays andaccusations of undue influence. Now the initial step in the process only involvesregistration of the proposed investment, before more complex issues are addressed.If a company is to be incorporated in SI to undertake the pearl farming the necessaryapplication and registration processes under the Companies Act should be initiated and thecompany’s name and details given in the application for investment registration.A prospective investor applies under s.15 of the Foreign Investment Act providing thebasic information required by s.16, describing the proposed investment activity and itslocation, if known at that stage. The Registrar checks completeness of the application andacknowledges receipt. Within five days the Registrar must reply approving or refusing theregistration or giving notice that he is taking advice, for which a further five days isallowed. According to ministry staff these time limits are being successfully applied.Pearl farming is not listed as a restricted or prohibited activity, and approval within theinitial five-day time period appears most probable. A certificate of registration would thenbe issued by the Registrar giving details of the approved investment. Detailed changes(business name, address) may be made to the specification at the request of the investor,but if major changes are proposed a new certificate would be required.A certificate may be cancelled by the Registrar if the proposed activity has not startedwithin twelve months of the investor receiving the certificate or if the investor engages ina reserved or prohibited activity or breaks the law relating to investment. If the certificateis cancelled the investment activity must cease.The Act also establishes an Investment Facilitation Committee, to be appointed andoverseen by the Minister. The committee had not been activated at the time of preparingthis brief. The committee is designed as a review board for decisions of the Registrar, andis itself subject to review by the High Court of SI in matters of law.16

8. Taxation and incentives8.1 Direct taxation: business taxResident corporations (companies) and individuals are taxed on their global income. Nonresidentsare taxed on income derived in Solomon Islands. The profits of residentcorporations are taxed at 30%, non-residents at 35%. In calculating profit, deductionsfrom income are allowed only for costs incurred in producing that income.Capital expenditure is not normally a deductible expense (depreciation is deductible atprescribed rates). However, 100% deduction of capital expenditure is allowed for certainagricultural, livestock and scientific purposes, and it should be possible to make a goodcase for the same treatment to apply to development of pearl farming. Tax losses can becarried forward for up to five years provided there is no change of shareholder control.8.2 Direct taxation: personal income taxEmployers are required to deduct personal income tax (PAYE) from their employees’wages and remit the proceeds to Inland Revenue. Individuals are taxed on an incrementalscale. (In this section $ means SBD) Above a personal allowance of $7800 per year,income is taxed at 11% for the next $1-$15,000, 23% for the next $15,001-$30,000, 35%for the next $30,001-$60,000, and income above $60,000 is taxed at 40%.These rates were set some years ago. With the fall in the value of money the real rate ofpersonal tax is sufficiently high to induce significant concealment of income and taxevasion. Moreover a recent increase in the legal minimum wage has moved it above thepersonal tax-free allowance. This presumably unintended outcome needs rectification.Income tax is also collected through a withholding tax, deductible from payments toresidents and non-residents for a range of services and on dividends. There is reason tothink that in practice this tax is less than fully collected both in urban and rural areas.Nevertheless it forms part of the formal tax structure and would apply to pearl farming.A pearl farm investor would presumably devise a combination of personal residence andemployment arrangements to minimise tax payable in SI while complying with the law8.3 Indirect taxGoods tax is charged on the wholesale value of locally manufactured goods, and onimports, where it is charged at 15% of a notional wholesale price calculated as 130% ofthe sum of CIF value and any import duty payable. There are a number of categories ofimported goods exempt from goods tax, including scientific and research equipment. Itwill be worth requesting exemption from goods tax for any such equipment and otherspecialised imports required for pearl oyster development.Sales tax is charged on sale of fuel, travel, professional services and a range of otherservices. It does not apply to marine or agricultural products. A pearl oyster farm willhave to pay sales tax on many of its purchases but is unlikely to be selling goods or17

services that would require it to charge and collect sales tax and remit the proceeds itInland Revenue.Import duties are charged on a wide range of imports, but duty rates have been greatlyreduced over the last ten years as part of trade liberalisation policy. When a schedule oftechnical and scientific equipment and other specialised imports is available, an investorshould request exemption from import duty on the initial importation as a valuable formof assistance to undertake the investment. Such exemption is possible and seems likelyhere if the case is well put; note though that requests are as a matter of principle treatedsceptically because of a history of abuse of ministerial powers of duty remission.8.4 IncentivesThe government has recently moved to regularise the granting of incentives for new andadditional investment, by moving the function from the former Investment Board to theInland Revenue Division. There an Exemptions Committee considers requests and makesrecommendations to the Commissioner of Inland Revenue.Within the limits of the tax law, guidelines to the Commissioner are laid down by theMinister of Finance. These stress that government revenue should only be forgone by thegrant of tax exemptions if there are clear net economic and financial benefits expectedfrom the proposed investment. Pearl farming’s investment cost and benefit profile isunusual and will require careful explanation to the tax authorities, but it should bepossible to make a good case for tax incentive treatment that fits the likely profile.The government has indicated that it wants to reduce the importance of specificexemptions and concessions as incentives to investment by creating a ‘more level playingfield’ for all businesses. Personal tax rates and thresholds are generally regarded as out ofdate and uncompetitive, with change long overdue. It seems likely though that aninvestment incentive in the form of a multi-year business tax holiday would remain, toenable capital invested to be recouped faster than would otherwise be the case (see 8.3).The most likely and useful business tax incentive available to a pearl farm investmentappears to be a tax holiday (exemption from business profits tax) for a period of up to 10years, the actual period to be decided on basis of the projected performance of thebusiness. This would be assessed by the Exemptions Committee and put forward to theCommissioner. A well-argued case should be able to obtain the maximum exemption.9. Licence under the Fisheries Act, 1998A pearl oyster farm will require a licence as a ‘fish processing establishment’ under theFisheries Act. There should be no difficulty in obtaining this from the AquacultureDivision of the Ministry of Fisheries, once the proposal has been registered under theForeign Investment Act. Under the 2005 Regulations a fee of SBD10,000 is payable foreach species farmed. If both gold and black-lip shell are farmed it is likely that two feeswill be payable.18

10. Labour laws10.1 Foreign workersWork permits under the Employment Act and residence permits under the ImmigrationAct are required for foreign employees, including the investor himself/herself. Though thenumber of foreign workers is not likely to be large, an organisation diagram and jobdescriptions for the positions to be filled will need to accompany the request for workpermits, to be sent to the Commissioner of Labour. The application forms contain achecklist of information required, including a description of the special skills that make itnecessary to employ foreign workers, and the biodata of persons for whom permits arebeing sought. Evidence of training programs or other ways to be used to build up localcapacity to replace foreign workers is required. Permits are issued for periods up to twoyears for fees of SBD150-SBD1100.10.2 Wage structure and legal minimum wageWages in formal jobs in rural areas range from $30-50 per day for semi-skilled to $100-$150 per day for skilled workers. The recently revised legal minimum wage in agriculture,which includes mariculture is $3.80 per hour or about $30 per day.An oyster farm could expect to recruit all its unskilled and semi-skilled workers locallyand not be involved in transporting them to and from annual leave. Workers housed onsite would receive free basic housing, water sanitation and lighting. Supervisory andjunior management pay in rural-based formal employment is in the range $30,000-$100,000 a year, plus free housing, water and electricity.Workers in formal employment will be required to pay income tax (mentioned earlier) andcontribute to the national provident (superannuation) fund, NPF, to which employeescontribute 5% and employers 7.5% of pay. This is deducted from pay and the totalremitted quarterly to NPF.11. Provincial government business licensingLicensing of businesses is one of the functions devolved to provincial governments. Theirchronically weak financial condition has from time to time led provincial governments toimpose unrealistically heavy licence fees (claimable as a pre-payment of business incometax but a heavy imposition on businesses—other than natural forest logging—not yet atthe stage of making taxable profits). These moves have triggered protests to national andprovincial governments by non-logging business operators and the subsequent reductionof the proposed fees. There is now a move within the national government to relieveprovincial governments of this function and to compensate them for loss of businesslicence revenue through the national-provincial grant system.19

12. Environmental impact assessmentThe Environment Act, 1998, requires that any development—defined (despite a printingerror in the relevant schedule) in a way that clearly includes the farming of oysters andassociated land-based activities—should be the subject of an application for developmentconsent under the Act. In considering the application the Director of Environment mayrequire the preparation of a public environmental report or an environmental impactassessment, which would be published. After periods for public reaction to such report orassessment have elapsed the Director may issue the development consent with or withoutconditions, or may refuse consent.Given the need for environmental care in the rearing of oysters and the relatively smallscale of the shoreside installations required, it is unlikely that environmental objectionswould arise in this case. Nevertheless an investor should be seen to comply with therequirements of the Environment Act. The administrative and technical arrangements forimplementation of the law are still untested, and a potential investor will need to take carethat the legal provisions intended to protect the environment are understood and applied inthe project.13. Contacts on investment matters1. Foreign Investment: Director, Investment Division, Derek Aihari, tel.228562. Taxation: Inland Revenue Exemptions Committee, Joseph Dokekana, tel. 225563. SI Chamber of Commerce and Industry: CEO Daniel Tuhanuku, tel.395424. Fisheries: Chief Aquaculture Officer Simeon Alekera, tel.305645. Lands Division: Commissioner of Lands, Joseph Pinita, tel. 239896. Labour: Deputy Commissioner of Labour, David Kaumae, 268117. Environment: Director of Environment, Fred Peter Siho, tel. 230318. Legal services: Primo Afeau, tel. 25600; Andrew Radclyffe, tel. 240959. Chartered accountants: Morris and Sojnocki, tel. 21851; Misi and Associates, tel.3037210. Banks: ANZ tel. 21111; Bank South Pacific tel. 21874; Westpac tel.21222See 2008 Telephone Directory Yellow Pages and 2008 Solomon Islands Trade Directoryfor more accounting, legal, professional and technical services.20

GILLETT, PRESTON AND ASSOCIATES INC.Marine Resource Assessment, Development and ManagementStimulating Investment in Pearl Farmingin the Solomon IslandsPearl Farming Policy and Management GuidelinesReport to The WordFish CenterGarry L. PrestonAugust 2008

Stimulating Investment in Pearl Farmingin the Solomon IslandsPearl Farming Policy and Management GuidelinesG. L. Preston30 October 2008TABLE OF CONTENTS1. Executive summary......................................................................................................22. Background ..................................................................................................................43. Pearl farming in the Pacific Islands ...........................................................................53.1. Development history................................................................................................53.2. Farming operations ..................................................................................................73.3. Marketing.................................................................................................................94. Pearl farming in Solomon Islands ............................................................................104.1. Opportunities and prospects...................................................................................104.2. Legislation..............................................................................................................114.3. Policy .....................................................................................................................145. Environmental management of pearl farms............................................................155.1. Pearl oyster health..................................................................................................155.2. Stocking density.....................................................................................................165.3. Farm size and location ...........................................................................................165.4. Movement of pearl shells.......................................................................................175.5. Hatchery operations ...............................................................................................185.6. Other environmental requirements ........................................................................195.7. Cultural sensitivity.................................................................................................206. Community and smallholder participation .............................................................206.1. General...................................................................................................................206.2. Lease payments and access royalties .....................................................................206.3. Shareholding or business participation ..................................................................216.4. Employment...........................................................................................................216.5. Spat and shell collection ........................................................................................226.6. Small-scale pearl farming ......................................................................................237. Investor incentives .....................................................................................................247.1. Duty and tax relief .................................................................................................247.2. Employment of seeding technicians ......................................................................257.3. The Worldfish facility............................................................................................258. Future management arrangements for pearl farming ...........................................259. Bibliography ...............................................................................................................26

Page 21. EXECUTIVE SUMMARYPearl farming has been demonstrated to be technically feasible in Solomon Islands, and theGovernment is keen to see the development of a commercial pearl farming industry whichprovides rural income and employment, and generates foreign exchange and other benefits atthe national level. The Worldfish Center has been supporting the Government in this regard,through a range of research and development activities of which this study forms a part. Thepresent report reviews experience with the development and management of pearl farmingindustries in other countries, especially Pacific Island countries, in order to derive lessons thatmay guide management of the industry in Solomon Islands.The report concludes that a management framework for the industry should be established atan early stage, to avoid problems that have occurred elsewhere. These problems include pearloyster disease and mass mortalities which have severely curtailed pearl production, andwhich could have been prevented or mitigated by better husbandry practices; and loss ofproduct value through inadequate quality control and the entry of low-grade pearls onto themarket. The management framework needs to address these issues, and ensure that the pearlfarming industry develops in a way that provides maximum economic and communitybenefits, and minimises negative environmental and social impacts.The findings of this report are being used to support the formulation of the proposedmanagement framework, which will initially consist of two primary elements:• a pearl farming policy statement for consideration by Government and which, whenadopted, will provide overall guidance to the management of the industry;• a pearl farming regulation, which lays down specific requirements and restrictions onpearl farm operators, and which can be adopted by the Government either underexisting fishery legislation, or under new legislation currently being prepared.Key proposed policy goals include:• generation of national revenue and foreign exchange through increased exports;• economic diversification;• creation of jobs;• developing new skills for Solomon Islanders; and• providing rural communities with income-earning opportunities.Proposed policy initiatives to be used in achieving these goals include:• consideration of tax concessions for new pearl farming investors for an initial periodof ten years;• issuance of long-term (ten year renewable) licences to approved pearl farmingoperations;• issuance of work permits for foreign workers having skills not available in SolomonIslands, notably senior managers and seeding technicians;• continuation of the existing ban on export of wild-caught pearl shell;• management of the industry to ensure good farm husbandry practices, minimise therisk of pearl shell disease and mortality outbreaks, and mitigate against the transfer ofparasites and pathogens;• environmental regulation of other industries which may have impacts on pearlfarming operations;• regulation of pearl exports to prevent marketing of low-grade or inferior-qualitypearls by small-scale producers who may eventually enter the industry.

Page 3The regulatory approach proposed focusses on the following primary controls:• location of farm sites, and restrictions on their relocation once approved;• limits on the total number of pearl oysters held under culture at any one farm site;• limits on stocking densities of pearl oysters, expressed as numbers of oysters per unitof volume occupied by the farm;• minimum spacing between farm sites;• restrictions on the importation and translocation of live pearl oysters;• regulation of the use of noxious or polluting substances;• minimum standards for waste disposal processes and procedures, including fromhatcheries;• implementation of environmental management plans and codes of practice;• restrictions on the transfer of licences.It is proposed that Government give priority to pearl farming investment proposals thatinclude:• the degree to which local communities are likely to benefit from the project in termsof employment, collection and processing of spat, lease payments, training and skillsdevelopment, and other advantages;• the likely benefits to Solomon Islands in terms of exports and foreign exchangeearnings;• the commitment of the investor to environmentally responsible operations, asevidenced by the environmental management plan or code of practice for the project.Forms of support that Government may be able to provide to prospective pearl farmersinclude:• provision of historical information held by the Government that may be relevant topearl farming operations;• access to hatchery and/ or analytical laboratory facilities in which the Government hasan interest;• jointly financed or executed pearl farming research activities;• community extension and training activities by Government in support of pearlfarming development.As the Solomon Islands pearl industry develops, the Government should establish andparticipate in consultative mechanisms that will ensure full and open dialogue betweencommercial pearl farmers, participating communities, and relevant government agencies. TheGovernment needs to work closely with the industry to ensure that pearl farmingmanagement arrangements remain appropriate to the needs and development of the sector,and to ensure that the interest of all participants are fully protected.

Page 42. BACKGROUNDPast research suggests that black-lip and possibly white-lip pearl farming could be technicallyand economically feasible in Solomon Islands. The WorldFish project ‘StimulatingInvestment in Pearl Farming in the Solomon Islands’, of which this study forms a part, aimsto carry earlier research on pearl oyster distribution, life history and culture in SolomonIslands into an economic development phase by encouraging the engagement of overseasinvestors in the industry. The project, which is funded by EU-STABEX funds, involvesstudies of a number of relevant areas, including:• consolidating information from past research on pearl oysters in Solomon Islands;• assessing status of white-lip pearl stocks;• management policy and regulatory guidelines;• investment and business climate for pearl farming.These reports are being made available to potential investors who will be invited to visitSolomon Islands to assess pearl farming development prospects from their own perspectives.The present study concerns management, regulation and licensing of pearl farming activitiesin Solomon Islands. Experience from other countries shows that a balance needs to be struckbetween not imposing undue restrictions, burdens, or red tape on commercial operators, andensuring that the industry develops in a socially and environmentally responsible manner. Inparticular, aspects of the industry will need to be controlled to ensure that benefits toSolomon Islanders are maximised, husbandry techniques minimise the risk of diseaseoutbreaks among the farmed oysters, and operational practices do not cause environmentaldamage or social disruption.The report discusses the major issues that have affected or influenced pearl industrymanagement in other countries, and suggests approaches that would be suitable for SolomonIslands. Information has been gathered from published literature, media, interviews andconversations with relevant stakeholders, and industry documentation, some of which wasprovided in confidence. The topics covered are those specified in the consultant’s terms ofreference, viz.:• carrying capacity for pearl oysters;• mechanisms to deliver benefits to smallholders;• access payments to customary owners;• implementation of culturally sensitive operations;• regulations to protect investments;• marketing strategies;• penalties for violations;• incentives for investors;• opportunities for smallholders to progressively increase their involvement in theindustry; and• a framework for the industry to operate in an environmentally and sociallysustainable way and establish a reputation for Solomon Islands as a producer offine pearls.Discussion of these topics does not exactly follow the order or the headings listed above, buthas been organised so as to allow the logical development and argument of ideas andapproaches.

Page 5The concepts and suggestions presented in the report are then used to formulate twodocuments for consideration by appropriate agencies in the Solomon Islands Government:• a pearl farming policy statement, which lays out Government’s plans for andexpectations from the industry, and identifies a framework for socially andenvironmentally responsible industry development;• a pearl farming regulation, which embodies rules and requirements applying tolicensed operators, and which will apply to any pearl farming licenses issued bythe Government.Draft licence application and issue forms have also been prepared to assist the administrativeprocess through which the policy and regulation will be implemented.These documents have been produced after widespread consultation with Solomon Islandauthorities and it is anticipated, but cannot be guaranteed, that they will formally be adoptedby Government after due consideration and reflection. It is further expected that the latterdocument will be integrated into the review and revision of Solomon Islands fisherylegislation which is currently under way.3. PEARL FARMING IN THE PACIFIC ISLANDS3.1. Development historyTwo species of pearl oyster, the black-lip pearl oyster (Pinctada margaritifera) and thewhite-lip pearl oyster (P. maxima) 1 are used in commercial production of farmed pearls in thePacific islands. P. margaritifera is the smaller of the two species, and is found throughout thePacific Islands region, as well as in the Atlantic and Indian Oceans. P. maxima has a morelimited distribution, and is only found naturally in the high-island countries west of Fiji,although attempts have been made to introduce it to Palau, Kiribati, Tonga and othercountries. Both species occur naturally in Solomon Islands.Commercial farming of the white-lip pearl oyster originally developed on the northern andwestern coasts of Australia. In recent years some Australian operators have moved offshoreto reduce labour costs and escape the strict Australian regulatory environment, as a result ofwhich new farming operations have spread to Indonesia Vietnam, Cambodia, Philippines andMyanmar. Indonesia has now overtaken Australia as the world’s largest producer ofP. maxima pearls in terms of volume, but lags far behind in terms of value. A single white-lippearl farm has been operating in Papua New Guinea since about 1995, but there are no othersin the Pacific Islands region. Pearls from white-lip pearl oysters are generally more valuablethan those from black-lip because of their gold-to-white coloration and larger sizes.Commercial farming of the black-lip pearl oyster takes place in two Pacific Island countries –French Polynesia and Cook Islands – of which French Polynesia is the most prominent. Pearlfarming went through a 25-year development phase in French Polynesia, and continues to bethe biggest employer and export earner for the country. However the industry has declinedsignificantly in recent years, mainly due to problems of overproduction and poor pearlquality. In 1998 French Polynesia produced around 5 tonnes of pearls worth over US$ 1501 There are two varieties of P. maxima, commonly referred to as gold-lip and silver-lip. It is not known forcertain whether only one or both these varieties occurs in Solomon Islands. The term white-lip is used hereto include both varieties.

Page 6million; in 2002, it exported over 11 tonnes, worth about the same amount. Average pearlprices have fallen from around US$ 35/ gramme to about US$ 14/ gramme in the past tenyears.The government in French Polynesia has spent many years attempting to address theproblems of poor pearl quality, but with mixed success. Larger farming operations producesufficient pearl volumes to organise and run their own marketing networks or participate inauctions, often overseas. Larger operators are generally conscious of quality issues and areable to refrain from marketing low-grade or poor-quality produce. Smaller family farms,however, do not generally have direct access to organised marketing networks and often selltheir products indiscriminately by hawking them to visiting buyers or overseas jewelleryproducers. The sale of low-grade pearls in this way leads to a decline in the reputation andvalue of all pearls from that source. Negative perceptions of pearl quality may initially relateto an individual farm or farmer, or a given island or area, but will eventually affect thereputation of the country as a whole.Initially the French Polynesian government established a cooperative to market the pearlsproduced by smaller farms, pooling the production from over 1,000 small operators andthereby enabling them to participate in volume auctions and marketing networks.Membership in the cooperative gave small farmers access to government services includingtechnical advice, access to seeding technicians, low-cost farming materials and subsidisedloans, in exchange for which farmers were obligated to market their pearls through thecooperative. Low-grade pearls were ceremonially destroyed each year during high-profilepublic events intended to promote or restore overseas confidence in the quality of FrenchPolynesian pearls. However many farmers found ways to hide their poor quality pearls andkeep them out of the cooperative marketing network, instead selling them on the blackmarket. This process is said to have been aided by the growing number of local pearl seedingtechnicians, whose pay expectations were less than those of foreign technicians and who mayhave been less rigorous in regard to recording and controlling the pearls being harvested.In subsequent years the French Polynesian authorities have attempted to put in place anindustry code of practice, an active pearl marketing campaign that serves the industry as awhole, and a comprehensive system of quality control and certification, in which eachapproved pearl is sold along with an X-ray demonstrating the nacre thickness, as well as agovernment certificate of authenticity. These measures may have helped slow down thefalling image and value of French Polynesian pearls, but have not completely arrested it, andthe industry continues to decline. There is still a great deal of leakage, with large volumes ofpoor quality pearls continuing to enter the market. This undermines attempts by bothgovernment and large-scale producers to maintain the rarity value and exclusive image oftheir product.The second most important producer in the Pacific Islands region is Cook Islands, where theindustry was catalysed largely by developers from neighbouring French Polynesia whobrought technical skills and investment funds to the country. The Cook Islands industryproduced about US$18 million worth of pearls at its peak in 2000, but has declined since thattime, with production of only about US$2 million in 2005. A major disease outbreak at theend of 2000, attributed mainly to overstocking and poor farming practices, decimated theindustry, and it has still not fully recovered. Cook Islands has suffered more developmentproblems than French Polynesia, including, in addition to disease, conflicts among farmersand persistent marketing of low-grade pearls, which has undermined prices in general andgiven Cook Islands a widespread reputation as a producer of a low-grade product.

Page 7Other Pacific Island countries produce black-lip pearls in very small quantities. A handful offarms in Fiji and Papua New Guinea have been discreetly run by private operators over thepast 3-4 decades, of which one is currently operating in Fiji. Small donor-funded pilot farmshave operated in Marshall Islands, Federated States of Micronesia, and Kiribati. Tonga hasbeen carrying out research on the winged pearl oyster Pteria penguin with the intention ofeventually establishing a half-pearl industry. Other than Fiji, none of these countries arelikely to be significant pearl producers in the near future. Solomon Islands has also producedblack pearls at a demonstration farm (see report by Hawes and Mesia, 2007, in this series) butto date has also not been commercialised.3.2. Farming operationsBlack-lip pearl farming is typically carried out as follows. Larval pearl oysters are collectedfrom the wild by deploying strings of collectors on long (100-200m) anchored horizontalmainlines (longlines) suspended by floats a few metres below the sea surface. Juvenile pearloysters settling on the collectors are referred to as spat. Collectors are cheap and simple toconstruct, deploy and maintain; originally they were made from twisted up pieces of plasticsheeting, onion bags or bundles of twigs; nowadays they are often made of ‘mussel-rope’, aspecial rope manufactured specially for shellfish spat collection, which has its strandsdeliberately frayed or left hanging from the standing part of the rope.A typical small-scale collection operation might involve a few hundred individual spatcollectors strung along half-a-dozen mainlines. Each individual collector may collect a fewspat or a few hundred, depending on the characteristics of the collection area. Spat areallowed to grow to the size where they can be properly handled (at a minimum, about the sizeof a thumbnail, but usually somewhat larger) and then may be transferred to grow out lines orcages, or simply left to grow on the collector. Different areas have different characteristics inregard to mortality, predation, fouling by other organisms, etc., and this determines to a largedegree how early the spat need to be transferred and the handling practices to be followed.Spat collection and grow-out require little specialised equipment or knowledge and can beaccomplished by semi-skilled and unskilled operators.When the juveniles are about 15 cm in dorso-ventral measurement they can be prepared forimplantation with an artificial pearl nucleus. The preparation process involves deliberatelystressing the shell for several days or weeks before surgery, in order to clear reproductiveproducts from the gonads and make implantation easier. This is often done by dropping thepre-op shell lines to lie in a heap on the seafloor to deprive them of food and oxygen.Weakening the shell in this way reduces its ability to reject the nucleus after surgery,although there is a risk that the shell will be weakened so much that it will not survivesurgery at all. After mortality and rejection, a nucleus retention rate of 70% in the implantedshell would be considered good. Research carried out in Australia in the 1990s concluded thatbetter survival and retention rates could be achieved by anaesthetising the shell prior tosurgery, rather than stressing them, but anaesthesia is still an uncommon practice in theindustry.Carrying out the implantation operation is a highly skilled profession practiced byexperienced seeding technicians. It is a surgical operation in which the shell is partiallyopened, an incision made in the gonad, and a bead ground from the shell of a particularspecies of freshwater bivalve inserted. On top of the bead is placed a portion of mantle tissuefrom another pearl oyster, which has been sacrificed for this purpose. The operated oyster isthen returned to the farm where it is hoped that the incision will heal, the inserted piece ofmantle will form a pearl sac around the bead, and this will then deposit mother-of-pearl on

Page 8the bead in an even, uniform and attractive manner to create a pearl. For the first few weeksafter seeding the shell is kept inside a mesh bag in case it rejects the nucleus, which in thatcase can be recovered from the bag and re-used.A good technician will achieve low rejection rates (30% rejection would be considered good),and a high proportion of good-quality pearls. Pearl price is exponentially related to quality – agrade 1 pearl may be worth 10 or 100 times the value of a grade 2 pearl, so a small increasein the proportion of grade 1 pearls in a harvest makes a huge difference to the profitability ofthe farm. Pearl seeding technicians are costly, particularly the most skilled ones. The typicalcost of implanting pearl nuclei is around US$ 10 per shell. Since a typical mid-sized farmmay have 10,000 – 50,000 shells seeded each year, this represents a very substantialinvestment, and is a major barrier to entry into the industry.Harvesting of pearls typically takes place about two years after implantation. When a pearl isharvested, it is frequently possible to insert a new nucleus into the pearl sac in the gonad inplace of the harvested pearl, thus immediately commencing a second crop. Second andsubsequent pearls from the same oyster tend to be of better quality than first pearls becausethe pearl sac is already established. In addition, larger nuclei can be used, leading to aprogressive increase in pearl size and value. Some oysters can produce four or five pearlsduring their lives, and occasionally even more.The main difference between black-lip and white-lip pearl farming is in acquisition of shellfor implantation. White-lip spat are less abundant and settle less readily on spat collectorsthan black-lip, hence spat collection is not a major source of young oysters for this species.Traditionally white-lip were collected as young adults from the wild, but hatchery technologyfor pearl oysters has now developed to the point that juveniles of both white-lip and black-lipcan be produced in relatively simple hatchery facilities. Where wild stocks are unable toprovide sufficient white-lip pearl oysters for farm operations, hatchery-reared spat areincreasingly used.In general, black-lip pearl farmers prefer wild-collected juveniles over those reared inhatcheries, as they are reputedly more robust and are said to produce better-quality pearls.This is not universally true, however, and some users of hatchery-produced spat appreciatethe consistency of size and shape, which makes seeding easier. For wild spat collection to besuccessful requires a robust natural spawning stock to produce the juveniles, which in turnrequires that the natural stock not be excessively harvested, either for shell (which is anexport commodity in its own right) or for adults to be used for seeding. In areas where naturalstocks have been depleted, pearl farms can contribute to reproductive success by aggregatingconcentrations of breeding adults, and spat collection operations are often most successful inlocations close to existing farms. Nevertheless a rigorous management regime for wild adultsis required where spat collection is the basis of a pearl industry, no matter how many shell arebeing kept under culture, and both French Polynesia and Cook Islands have restricted orbanned the collection of adult pearl shell from the wild in islands where pearl farming ispractised.The pearl farming industries of French Polynesia and Cook Islands have evolved to showsimilar structural characteristics. A small number of large companies produce the majority ofthe pearls while larger numbers of smaller producers or family farms each produce smallnumbers of pearls, or simply collect and sell juvenile shell to the larger operators. Thissegmentation of the industry allows participation at different levels. Large investors withsubstantial capital, a long time horizon and a low aversion to risk can take the chance toimplant large numbers of pearl shell in the hope of substantial economic gain. At the sametime small operators with limited capital or those who are new to the industry can collect and

Page 9sell spat to the larger operators, while also accumulating the adult shells, capital and skillsnecessary to move into actual pearl culture should they wish.This industry segmentation is very suitable for a country like Solomon Islands, where there isa need to provide rural dwellers with income-earning opportunities. Because farming ofwhite-lip does not generally involve collection of spat from the wild, there are feweropportunities for participation by smaller players in the industry and this may make it lesssuitable as a development option for Solomon Islands than black-lip.Even in the case of black-lip, however, small farmers will only be able to participate in theindustry if there are larger operators present to provide a market for spat and juvenile shell. Inaddition, a critical mass of shell to be implanted is needed before it becomes economicallyfeasible to bring in a seeding technician. If one or more large operators are in place, each withseveral hundred thousand shell under culture, then a seeding technician can be hired toimplant these shell as well as those of any smallholders in the vicinity. Without this criticalmass it becomes difficult and costly to organise for a seeding technician to implant smallnumbers of shell held in numerous widely scattered locations.3.3. MarketingThe primary method of marketing pearls is to sell them through auctions or speciallyorganised gatherings of pearl and jewellery buyers, either in consumer countries or, where thevolume of product warrants it, in the country of production. Hong Kong is a primary centrefor pearl auctions, but they are also held in many other locations.When selling at auction, pearls are typically organised into lots which may contain severaldozen or just a few pearls of varying quality. This arrangement prevents buyers from pickingonly the best specimens, and leaving the seller with unsold lower-value pearls. Because of thevolume of product required to allow parcelling of the pearls into lots, only larger-scaleproducers can effectively participate in auctions. As noted earlier, there have been efforts toconsolidate the production from small farmers through collective marketing arrangements,with partial success.Smaller farmers may market direct to the jewellery trade, locally or overseas, or to thegeneral public. This often leads to indiscriminate marketing to buyers who may not besufficiently knowledgeable about pearl quality to judge good from bad. Subsequent problemswith the pearls give a bad name to the product and depress demand and prices across theboard.Quality control is therefore a critical issue. In both French Polynesia and Cook Islands themarketing of poor quality pearls has damaged the industry. In some cases this is a result offarmers harvesting too early, leading to pearls with only a thin nacreous layer thatsubsequently cracks or wears off. In others very low-grade pearls have been sold that wouldnormally have been rejected and destroyed. Pearls are a high-end luxury product andexperience in other countries has shown that industry revenues are maximised by marketingonly the best-quality product, maintaining the image of rarity and exclusivity, and keepinglow-grade pearls off the market altogether, preferably by destroying them.If the problem of pearl quality can be overcome then there are strong prospects fordeveloping local pearl and pearl shell jewellery products in the country of production, for saleto tourists and other visitors. Local jewellers can add significant value to the base product andprovide mementos and souvenirs that attract premium prices from visitors. In other pearlfarming countries, retail pearls and pearl jewellery are more expensive when purchased incountrythan when purchased overseas, where they tend to be competing with a range of

Page 10alternative products. Most medium- and large-scale pearl farms work with local or overseasdesigners to develop their own jewellery lines for sale through retail outlets on the farmsthemselves, or in local hotels and tourist stores.In countries with significant amounts of tourism, pearl farms can generate additional revenueand value by organising farm visits and tours that take in operations such as spat collectingand processing. As well as generating additional revenue for the farming operation, toursprovide a good way to expose visitors to jewellery products and increase on-farm sales.Where tourism forms part of the pearl farm’s activities, proper attention needs to be paid toenvironmental management to ensure that visitors perceive the farm as a clean and healthyoperation which is not polluting or harming the marine environment.Pearl farms also produce significant amounts of pearl shell, which is in high demand overseasfor jewellery, furniture inlays and other decorative purposes. Export of shell is permitted insome countries but may be prohibited where there are concerns about management of wildpearl oyster stocks. Farmed shell are hard to distinguish from wild shell, so allowing theexport of farmed shell provides an opportunity for illicitly harvested wild shell to enter thetrade.4. PEARL FARMING IN SOLOMON ISLANDS4.1. Opportunities and prospectsPearl farming has several characteristics that make it a particularly suitable form ofdevelopment for the Solomon Islands:• it uses species that are native to Solomon Islands, so there will be none of theunwanted environmental impacts that may arise when new species are introduced;• culture techniques are well-established, and have been shown to be economicallyfeasible and socially and culturally appropriate in other Pacific Island countries;• pearl farming can be carried out in rural or remote areas, providing developmentopportunities away from the urban centres;• spat collection and some aspects of farm maintenance are labour-intensive andlow-technology, and can be carried out using unskilled or semi-skilled rurallabour. Other activities, such as those involving diving, can also be carried outusing local labour after suitable training by the farm operator;• the products (pearls and pearl shell) are non-perishable, low in volume and high invalue, a major advantage in Solomon Islands where domestic transportation linkswith rural areas are unreliable and quite costly;These characteristics are favourable for the development of a rurally-based pearl farmingindustry in which small-scale operators and large investors can profitably participate.In general black-lip pearl farming has been most successful to date in atoll locations, wheregeomorphologic features favour the retention of spat and consequently give high levels ofspatfall. However black-lip farming has also been carried out successfully in Fiji and PapuaNew Guinea, which, like Solomon Islands, are high island countries with mainly open reefand lagoon systems. White-lip pearl farming is not associated with atoll locations, and occursalong the coast of Australia as well as other locations in South-East Asia.Initial questions about the feasibility of pearl farming in Solomon Islands centred around theavailability of spat in the wild, since, given the open nature of the reef systems, it was notknown whether these would be retained in coastal waters in sufficient numbers to permitcommercial farming. However trials carried out by the WorldFish Center indicate that black-

Page 11lip spat can be harvested in commercial quantities in Solomon Islands, and that saleablepearls can be produced. Previous pearl oyster research data from Solomon Islands issummarised in a companion document to this report (Hawes and Mesia, 2007).One positive element in this regard is the current moratorium in Solomon Islands on pearlshell exports. The Fisheries Division imposed this in 1994 in response to fears of overexploitationfollowing high levels of shell exports in prior years. The moratorium is still inplace, although some illegal harvesting takes place and illicit export consignments, primarilyof white-lip shell, are occasionally intercepted. Surveys have shown that white-lip pearloyster populations persist in several parts of Solomon Islands, though current numbers areprobably too low for a pearl industry based on wild caught shell (see report by The EcologyLab (2008) in this series). However, production of pearl oyster spat has been successfullydemonstrated in Solomon Islands by the WorldFish Center. WorldFish hatchery-reared spatwere grown out and seeded to produce pearls without any particular technical difficulties (seeHawes and Mesia 2007).Other factors that are positive for the development of a pearl-farming industry in SolomonIslands include:• there are large numbers of potential farming sites;• based on WorldFish Center trials, pearl oyster growth rates appear to be about25% faster than in Cook Islands;• labour costs are generally low (current minimum rural wage of about US$ 5 perday in Solomon Islands, as compared to about US$ 50 per day in FrenchPolynesia).Although environmental and economic conditions appear favourable, there are several factorsthat may work against the development of a pearl farming industry in Solomon Islands. Inparticular, there is a generally poor external perception of Solomon Islands by many potentialinvestors (Government instability or unreliability, ethnic tensions, security of investment,etc.). These issues are often exaggerated, as discussed in a report from this project on theeconomic and investment climate in Solomon Islands (Hughes 2008).Even if investors (whether foreign or domestic) were forthcoming, this would not necessarilylead to a situation in which rural Solomon Islanders would be able to participate in theindustry. The natural business decision of a commercial pearl farmer would be to carry outspat collection/ production himself along with his pearl seeding and harvesting activities, andto undertake his business in as secretive a manner as possible in order to protect his owncompetitive advantage. Under these circumstances there would be few flow-on benefits torural Solomon Islanders apart from a few manual jobs, and no mechanism to support thedevelopment of community or family-based farming activities. It is the responsibility of theSolomon Islands Government to implement policy and legislation to ensure that developmentof a pearl industry is managed in a way to make it attractive to investors, environmentally andeconomically sustainable and capable of delivering benefits to rural communities.4.2. LegislationSeveral government documents pertain to the management of fisheries aquaculture inSolomon Islands. Chief amongst these are the Fisheries Act (1998), Fisheries Regulations(2002) and the Ministry of Fisheries and Marine Resources’ Aquaculture Development Plan.Responsibility for the management and development of Solomon Islands’ marine resourceslies with the Ministry of Fisheries and Marine Resources (MFMR). The Fisheries Act (1998)(hereinafter referred to as the Act), is the major piece of legislation governing fisheries and

Page 12fisheries-related activities. The Act is currently (late 2008) under review, but until newlegislation is fully adopted will continue to apply to any prospective pearl farming activities.The Act provides the basic legal framework from which other subsidiary controls can bederived but in itself has minimal direct application to the overall control of aquaculture. TheAct does not distinguish aquaculture from other fishing methods or fisheries, and theapplicability of some provisions to aquaculture control is unclear. The Act does howeverhave certain relevant provisions, as follows:• Section 31, Aquaculture Operations, requires the written permission of the Director ofFisheries, with or without conditions, for the setting up and operation of anaquaculture activity. Conditions that may be specified with a written approval dealwith issues such as ‘the location of the aquaculture facilities and its operation, theprevention of the spread of communicable fish diseases, the inspection of aquaculturesites and the provision of statistical information’. Contravention of the provisions ofthis section invokes a penalty of up to SI$ 100,000 on conviction.• Section 32, Import and Export of Live Fish, prevents the import or export of live fishwithout the Director’s permission. The section imposes an assessment on the possibleimpacts of imported live fish being released into the wild. Contravention of theprovisions of this section invokes a penalty of up to SI$ 500,000 on conviction.Provisions for further aquaculture control come in the form of ‘regulation making powers’under Section 59, Minister’s Powers to Make Regulations, under which the Minister mayregulate, in general, any fishery activity in need of or requiring control for management anddevelopment purposes. Section 59(1)(xiv) specifically empowers the Minister to regulate thecultivation of seaweed and other aquatic organisms, and Section 59(1)(xv) empowers thelicensing of fish farms and regulation of the importation of live fish.Draft Aquaculture Regulations were developed by the MFMR Aquaculture Division andsubsequently included as Part 2 of the draft Fisheries Regulations (2003). They were intendedto apply to the farming of a range of species, including Pinctada margaritifera, P. maximaand Pteria penguin. The draft Regulations describe aquaculture licensing procedure andimpose penalties upon violation of the licensing requirement. No licence is required for ‘anytraditional practice of breeding, farming, culturing, taking or holding of live fish or aquaticorganism the purpose of which is for subsistence, personal or traditional use only’ and‘farming which is done by a local or a local community on a small scale and for subsistencepurposes only’. Despite providing a detailed and useful basis for aquaculture management,the Fisheries Regulations 2003 have never been gazetted and are therefore not in force.Under the provisions of the draft Regulations, any application for a licence should contain thefollowing information:• details of the species, stage of the life cycle and quantity of the aquatic organism to bebred, farmed, cultured or held;• plans relating to the construction, development or modification of an aquaculturefacility to which the application relates;• details of the location of the aquaculture facility and of all places, if applicable, atwhich the applicant intends to breed, hold, rear, process or sell fish or aquatic life;• details of the gear, tools or equipment that the applicant intends to use to take fish oraquatic life;• approvals required under any other law, and;• such other information as may be required by the Director.

Page 13The draft Regulations also specify the conditions of the licence that may relate, but are notlimited, to:• the species of fish or aquatic life to be bred, farmed, cultured or held;• the stages of the lifecycle of fish or aquatic organism at which the same may be kept;• limitation of the quantity of fish or aquatic life that may be kept or sold;• the method of water discharge or waste disposal;• the location of the aquaculture facilities;• limitation of the use of chemicals or drugs, if any;• a requirement for the lodgement of a guarantee or security to cover the cost of damagethat may be caused by the operation of the aquaculture facility.The licence is not transferable. The Director may review, vary or alter the conditions of thelicence, or temporarily suspend a particular condition. Under specific circumstances, theDirector may cancel, revoke or suspend the licence. Any person aggrieved by such a decisionof the Director, or the decision not to issue or renew the licence, may appeal to the Ministerwithin 30 days following receipt of the notification of such decision.In addition to the licensing requirement, all aquaculture facilities and equipment must bebuilt, installed or constructed to standards approved by the Director of Fisheries. Forexample, all facilities need to have an effluent reservoir in which wastewater is to be treatedbefore discharge. The Regulations also require biological (as opposed to chemical) means ofeffluent treatment to be used unless circumstances render it costly or impractical. TheDirector may impose conditions to the aquaculture licence relating to the method of waterdischarge or waste disposal. After inspection of the facility, the Director may issue acertificate certifying the facility as fit and proper for aquaculture activities. Without thiscertificate it is prohibited to culture aquatic organisms in the facility.As noted these draft Regulations are not yet in force, but there is the possibility that they maybe gazetted in the near future, as an interim measure until the new Fisheries Legislation isready. The draft Regulations provide a useful model which has been used during the presentstudy in the drafting of a specific Pearl Farming Regulation for consideration by Government.Only one commercial aquaculture operation has been licensed in Solomon Islands in the lastfew years, a land-based prawn farm on Guadalcanal, which is no longer operating. Becauseof the absence of appropriate licensing mechanisms, this was licensed as a fish processingestablishment. The only other aquaculture licence thought to have been issued in SolomonIslands was to ICLARM (now the WorldFish Center) in the early 1990s for communityaquaculture projects supported by that organisation based on the grow-out and export of giantclams produced in the WorldFish hatchery.A revised version of the Fisheries Regulations was prepared in 2003, but for various reasonshas never been gazetted. The existing Regulations are likely to be superseded as part of theongoing review of the Fisheries Act. Like the 1998 Fisheries Act, the new draft Act as itcurrently stands pays only limited attention to aquaculture. There is a need to strengthen theaquaculture provisions of the new Act prior to its finalisation, and to ensure that aquaculturein general, and pearl farming in particular, are adequately covered in regulations or othersubsidiary legislation. Representations and recommendations are being provided to thereview team to this effect.

Page 144.3. PolicyThe current government’s stated policy goal for the fisheries sector is ‘the development andsustainable utilisation of sea and marine resources to benefit and contribute to the well beingof Solomon Islanders’. The policy is accompanied by eight expected outcomes and a series ofassociated strategies, most of which relate to managing and increasing economic benefitsfrom capture fisheries, especially tunas. None of the outcomes or strategies make anyreference to aquaculture.MFMR’s Aquaculture Development Plan (hereinafter referred to as the Plan) contains anumber of statements of policy in regard to aquaculture in general and pearl farming inparticular. The Plan recognises that the Ministry lacks knowledge and experience ofaquaculture, and that institutional strengthening and human resource development arerequired. It also acknowledges the absence of appropriate policies and regulations foraquaculture, and urges the development of these. Noting that the WorldFish Center operatesthe only aquaculture hatchery in Solomon Islands, the Plan recommends against thedevelopment of further hatcheries by government, although it encourages governmentsupport to the private sector in regard to hatchery development. Section 9 of the Plan statesthat MFMR will provide information to prospective aquaculture investors in regard to landand sea tenure, licensing, infrastructure and transportation, among other things. In regard topearl farming, proposed actions by MFMR are:• Collaborate with WorldFish and EU to attract private investors in Solomon Islands;• Maintain the ban on the wild shell trade;• Implement the policies and licensing conditions developed by the EU-funded project;• Provide extension services for the participation of local communities throughProvincial Fisheries Officer, after the establishment of private farms;• Promote value added pearl oyster products particularly for rural communities inopportunities such as shell carvings or pearl mabe handicrafts.At present there is no policy or management framework specifically intended for the pearlfarming sector. The development of such a framework for an as-yet non-existent industrymay be regarded by some as somewhat premature and liable to discourage investors.However in other Pacific Island countries where the pearl industry has developed the absenceof any regulatory framework has led to major problems which have had to be addressed oncethe industry was already in a crisis. As with fisheries management, it is far better to learnfrom experience, anticipate problem areas and set the ‘rules of the game’ beforehand, ratherthan wait until the problems occur.Properly formulated management guidelines should also be a source of reassurance tolegitimate investors with a long time horizon. Bona fide investors will prefer to operatewithin a framework in which ‘the rules of the game’ are already in place and clearly spelledout, rather than in an uncertain environment where policy and regulations are ignored untilthere is a crisis, or are developed according to the whims of government ministers or publicservants.

Page 155. ENVIRONMENTAL MANAGEMENT OF PEARL FARMS5.1. Pearl oyster healthThe pearl oyster industry is based entirely on shellfish health. The pearl itself is a product ofthe immune defences of the pearl oyster, which work to fight off any invasion or irritation ofthe soft tissues by enclosing it in a pocket of calcium carbonate and protein. Since significantenergy is required to lay down this defensive pocket, the most productive pearl oysters arethose that are in good health and with access to the energy reserves required.Pearl farming means that cultured pearl oysters grow in crowded and unnatural conditions,are repeatedly handled, and undergo surgery, all of which present physiological stresses thatthe oyster would not face in the wild. The energy requirements for pearl production have tobe balanced against the need to handle the oysters and grow them in conditions they did notevolve to fit. This balance is easier to achieve if overcrowding and disease can be minimised.Most disease problems in pearl oysters centre on opportunistic pathogens taking advantage ofoysters weakened by the stress of handling, pearl surgery and sub-optimal growingconditions. Mass mortalities have been experienced in Japan, Australia, French Polynesia andCook Islands. In all cases these appear to have resulted from oysters being weakened bynatural events (e.g., high temperature or cyclone-induced changes), sometimes coupled withpearl oyster spawning seasons, or by coral spawning or red tides, both of which deplete thewater of oxygen; and then succumb to bacteria or parasites that are normally toleratedwithout harm. Poor farming and handling practices such as stocking shell too densely orfailure to clean the shell of fouling organisms, both of which weaken the oysters by deprivingthem of nutrients and oxygen, also seem to have contributed to mass mortalities.Pearl oysters have not yet faced the types of contagious disease agents that have plaguedother types of mollusc culture. Although a blessing for the industry so far, this means thatthere has not been extensive research on pearl oyster pathology, and there is a lack ofinformation documenting normal versus abnormal parasites, pests and diseases for thesespecies.Once an epizootic occurs in an aquatic habitat, the chances of eradication and control arelimited. In fact there are no examples to date of any molluscan disease agent being activelyeradicated from an open-water system. The main purpose of environmental and healthmanagement is to minimise the risk of disease outbreaks on pearl farms and, if an outbreakoccurs on one farm, to reduce the likelihood of it spreading to other farms. This is addressedmainly by regulating the total number of shell that can be held on a farm, their stockingdensity, the distance between farms, and the transfer of shell from one area to another.Environmental management also aims to ensure that pearl farming does not have negativeimpacts on adjacent marine ecosystems or on other economic activities, such as fishing ormarine tourism. Pearl farming involves the use of boats and fuel, construction materials forfarm lines and over-water structures, cleaning fluids, transfer of shells between locations, andthe disposal of pearl oyster fouling waste and diseased or dead shells. Pearl hatcheries mayuse antibiotics, disinfecting agents and other chemicals, and if an infection occurs can serveto spread disease to wild shell and the natural environment. If not carried out in a responsibleand sensitive manner, therefore, pearl farming can have potentially negative environmental,economic and social consequences which can degrade local marine ecosystems, affect otherresource users, and cause a nuisance to residents in the area.

5.2. Stocking densityPage 16Mature pearl oysters filter water at the rate of approximately 20 litres per hour, or 480 litresper day. If the oysters are not sufficiently separated they will collectively strip the water ofoxygen and nutrients and ingest excessive quantities of each other’s waste products. Aregulatory goal should be to ensure that stocking densities do not exceed one oyster per cubicmetre within the water volume occupied by the farm.On a typical pearl farm, shell are hung on ‘chaplets’, which are vertical ropes of 2 – 5 metresin length, and carrying 10 – 20 shell, either drilled through the hinge and tied directly ontothe chaplet, or in panel nets attached to it. Chaplets are strung along a horizontal mainlinewhich may be up to 220 metres in length (this being the standard length of a coil of rope). Inoperational terms, achieving a stocking density of one shell per cubic metre of water wouldrequire the following:• a minimum spacing of 10 cm between shells on a chaplet;• chaplets spaced along the mainline at minimum intervals of one metre;• mainlines spaced from each other at a distance of 10 metres, and preferably 20metres or more.Based on these minimum requirements a typical farm might be stocked as follows:• 100 mainlines each of 220 metres length, spaced 10 metres apart;• 220 chaplets hanging from each mainline, spaced at 1m intervals – total 22,000chaplets;• each chaplet 2 metres long, and carrying 20 shell spaced at 10 cm intervals – total440,000 shell.The volume occupied by the farm would be 440,000 m 3 (1000 m x 220 m x 2 m) giving therequired volume:shell ratio of one shell per cubic metre of water. Greater spacing betweenshells, chaplets or mainlines would further improve (i.e., lower) the stocking density.To facilitate monitoring, stocking density regulations should be kept relatively simple. Inparticular no distinction should be made between spat and adult oysters – the samerequirement of no more than one shell per cubic metre should apply irrespective of the oysterlife stage. In order to minimise the impact of any disease or health problems should theyarise, farm sites should be restricted to a maximum of one million shell held under culture atany one location. Shell in excess of this number should be held at a separate location andsubject to the provisions of a separate licence.5.3. Farm size and locationThe farm site described in the preceding section would occupy a surface area of 1,000m x220 m = 220,000 m 2 , or 22 hectares. However a more usual farming arrangement wouldinvolve the separation of shell into several areas (for examples, zones containing newly-hungspat, pre-operative shell, and seeded oysters) within the main farm site. Greater mainlinespacing, which should be encouraged, would add further to the need for space, as also wouldinstallations such as over-water seeding sheds. As a result a typical farm site would require alease area of at least 100 – 150 ha. To reduce the risk of disease outbreaks spreading fromone holding to another, regulations should stipulate that farm sites must be separated by atleast five kilometres of water.Most well-run farming sites are situated at least 100 m from adjacent reefs and in water atleast 25 m deep, with sediment rather than live corals beneath. These practices distance theshell from benthic predators and parasites and allow free water exchange below the hanging

Page 17shell. Mainlines are generally suspended at least two metres below the sea surface in order tokeep shell out of the most agitated part of the wave zone, and avoid accidental damage fromsmall boats. All these practices should be a regulatory requirement for pearl farmers inSolomon Islands.Where pearl farming takes place in atolls, especially closed ones, circulation may be limitedand currents weak, which may result in the accumulation of pearl oyster waste (faecalproducts and drop-off by fouling organisms) beneath farm sites. In these circumstances, goodhealth management practices require that mainlines be moved to adjacent areas after 1-2years, before being moved back after another 1-2 years. This allows alternate sites to liefallow and regenerate, avoiding excessive build-up of toxic or unhygienic waste products.Where farms are located in areas with stronger coastal currents, or in very deep water, thispractice is not necessary. Farms in Solomon Islands will probably correspond to the lattersituation, but the option should be retained to require farmers in semi-enclosed areas or lowcurrentsituations to relocate their mainlines between two (or more) alternate sites every twoyears.5.4. Movement of pearl shellsOne of the health risk factors relating to pearl farming is that animals may be transferred froman area where a disease or parasite is present, to an area previously free of the infection.Transfers may occur under a variety of circumstances: pearl farmers may collect spat in onearea and grow them out in another; farmers may take shell from an existing farm for purposesof expansion or setting up new farms elsewhere; broodstock may be relocated to or betweenhatcheries; or a new entrant into the industry may buy shell from an existing farmer to meethis start-up requirements.At the present time there are few constraints on the movement of biological material withinSolomon Islands, whether it be terrestrial or marine. Seaweed is regularly transferred amongfar-distant farm sites in response to the needs of farmers, and it is likely that pearl farmerswould similarly want to move batches of pearl shell from one place to another from time totime. In Australia, Japan, Cook Islands and French Polynesia regulations have beenintroduced to control the indiscriminate movement of pearl oysters between farming sites.Translocation is still permitted, but only takes place between sites where the health status ofthe shell population has been studied and monitored or, failing that, after health inspections ofthe shell to be moved and, sometimes, quarantine of those shell.The Secretariat of the Pacific Community (SPC) has published guidelines relating to thetransfer of biological material between and within countries for aquaculture purposes. Theguidelines provide disease inspection, quarantine and risk assessment protocols for a range ofspecies, including pearl oysters. It is recommended that as a minimum the SPC guidelines beadapted for incorporation into Solomon Island’s pearl industry management regulations. Ingeneral, local movements of shell within a 25 km radius need not be regulated, to allow areasonable dispersal of a pearl farmer’s spat collectors and grow-out sites. However anymovement of pearl shell over a distance greater than 25 km should require the writtenpermission of the Director of Fisheries. An application for approval of a pearl shell transfershould be accompanied by a full justification, and an explanation of what alternativemeasures have been considered. Permission for transfer should not be unreasonably withheld,but there should be a proper risk assessment of the proposed translocation before approval isgranted. If appropriate, histological examinations of sample of both the shell to be moved andthe population at the destination site may be required prior to transfer. If pathogens, parasites

Page 18or harmful fouling organisms are present in the shell to be moved, but not in the destinationpopulation, then this should be taken into account in the risk assessment.Pearl farmers operating in Solomon Islands could conceivably wish to import shell fromother countries. This is currently prohibited under Solomon Islands fishery legislation withoutthe express written consent of the Director of Fisheries and is highly regulated in most othercountries. As a matter of principle, the importation into Solomon Islands of live pearl oystersfrom other countries should not be permitted. Apart from the risk of introducing exoticparasites and diseases, inter-breeding of non-native shell will influence the genetic makeup ofthe local population and possibly compromise any natural advantages that Solomon Islandsshell may have in regard to adaptation to local conditions, pearl colour, growth rates andother characteristics relevant to pearl farming.5.5. Hatchery operationsHatcheries are used to supplement or replace the supply of wild-caught juvenile pearl oysters,as well as to permit selective breeding of pearl oysters with favourable traits for pearl farming(colour, high growth rates, disease resistance, etc.). Hatcheries rely on a small number ofwild-caught broodstock which are made to reproduce in closed tanks or water systems. Thelarvae so produced are initially free-swimming, but settle onto solid substrates after about 20days, and metamorphose into juvenile pearl oysters. Feeding is required in the initial stages,and a pearl oyster hatchery also needs to maintain cultures of live algae for this purpose. Boththe pearl oysters and the algal cultures are susceptible to infection and mass mortality causedby bacterial or other infections, so all aspects of the hatchery operation require high standardsof cleanliness and disinfection.The most significant environmental impacts that hatchery operations may have centre aroundthe uncontrolled disposal of used water and waste products into the surrounding waters. Thismay allow contamination of wild stocks by diseases or infections that may develop in thehatchery, release of non-native algal species or entry of disinfectants and other pollutants intonatural waters. A more subtle impact is that, as hatchery produced larvae join thereproductive population in the wild, they may alter the genetic makeup of the wildpopulation.Pearl oyster hatchery operation requires the culture of algae needed to feed larval andjuvenile pearl oysters. Different species of algae are used at various stages of the pearl oysterlife cycle, and each hatchery operator has his or her own preferences for the types to be used.Algae are usually obtained as sterile monocultures from overseas laboratories, which are usedto inoculate mass cultures within the hatchery. Mass cultures may become infected withbacteria or unwanted algae from time to time, so that they have to be disposed of andreplaced, requiring the hatchery to periodically import new starter cultures . There is theprospect of cultured algae escaping into the natural environment unless waste disposal isproperly managed.The primary environmental management requirement for hatcheries is therefore that all waterdischarge from the facility should be disposed of into an effluent reservoir or sump on land,at least 15m inland from the high tide mark, and well above it. Waste should preferably betreated by chlorination, ultra-violet disinfection or physical filtration to remove pathogensand harmful chemical residues, and should be allowed to settle in the effluent reservoir orsump for several days before draining out. Hatchery waste water should never be dischargeddirectly into the sea, or into rivers, streams or ponds. These measures effectively preventcontamination of the natural environment and wild pearl oyster stocks by the chemical orbiological products of the hatchery.

Page 195.6. Other environmental requirementsA number of other measures are suggested to ensure that pearl farming operations safeguardthe marine and coastal environment and avoid creating public nuisances. Some of theseshould be incorporated into regulations or licence conditions as requirements which incur apenalty if not followed. Others are measures that should be encouraged as part of aresponsible approach to pearl farming, but are not appropriate for inclusion as regulatorymeasures.Measures proposed for inclusion in regulations include the following:• farm lines must be secured to concrete anchors dropped on a sediment (not coral)seafloor. The practice of tying farm lines and spat collectors to coral heads,common in some countries, should not be permitted;• over-water structures should be built with minimum excavation and in such a wayas to minimise damage to corals and the adjacent environment. Use of anti-foulingpaints or building materials treated with toxic chemicals that might leach into thewater (such as tanalised timber products) should be prohibited;• cleaning and removal of fouling organisms from pearl shell under culture shouldtake place on a barge, raft or boat. Fouling and other waste should be taken ashoreand disposed of on land, not dumped in the water;• waste from over-water structures (cleaning products, food refuse, toilet flushingwaste and other pollutants) should be taken ashore for disposal, and not dumped inthe water;• containers that may have previously contained industrial chemicals should not beused for floats. Containers that have previously contained food or other non-toxicproducts should be thoroughly cleaned and labels removed before use;Licenses should also require the provision of basic data on pearl farming and spat collectionoperations using standard forms and logsheets that will be developed as part of the licensingprocess.Measures that would be good practice, but which are not suitable for inclusion in regulations,include:• daily operations require the use of fuel and oil. Employees should be trained inspill prevention and precautions taken to ensure spills are avoided;• use of four-stroke rather than two-stroke outboard engines for pearl farmoperations;• rubbish and litter not to be thrown into the sea;• animals not to be kept on over-water structures;• regular information meetings and consultation with stakeholders, includingcommunity representatives, landowners, local government officers, and FisheriesDepartment personnel.As part of the pearl farming application process, proposers should be encouraged to submitan environmental management plan (EMP) which addresses the above issues and specifieshow the requirements will be met. The EMP should describe the physical and operationalsystems and measures that the pearl farming operation will put in place to ensureenvironmental management goals are monitored and met, including human resourcemanagement measures (staff training, incentives to encourage good practice, performancemonitoring, etc).

Page 20In addition to licensing under the Fisheries Act, under the 1998 Environment Act pearlfarming operations would require a development consent from the Director of Environment,which may in turn require an environmental impact assessment (EIA). By including an EMPwhich complies with the above requirements and guidelines as part of the project approvaldocumentation, prospective pearl farm investors would not only be demonstrating acommitment to environmentally responsible operations, but may avoid the need for (and costof) a formal EIA.5.7. Cultural sensitivityIt goes without saying that pearl farming operations need to develop in a manner that isreasonably harmonious with Solomon Islands cultures and traditions. While economicdevelopment will always involve change, there is no reason why this cannot take place in aframework of mutual respect and cooperation between commercial pearl farming operationsand local communities. At the very least it will be a requirement for investors to consult withlocal community representatives and stakeholders, and understand their needs andaspirations. Care should be taken to avoid activities that are inappropriate in areas of culturalimportance, such as historically-important sites and tabu areas, or to do things such asdumping of rubbish and waste products in a way that will cause a nuisance to members of thecommunity. Encouraging direct or indirect participation in the industry, as described in thenext section, will also go a long way towards cementing good relations between pearl farmersand local communities.6. COMMUNITY AND SMALLHOLDER PARTICIPATION6.1. GeneralThere are a number of ways in which local Solomon Islanders can benefit from theestablishment of pearl farming operations by a foreign investor. Benefits would primarilyaccrue to people and communities in the immediate area of the pearl farm, and could include:• access payments or royalties in regard to a lease over an area of water and adjacentland where pearl farming operations are carried out;• revenue generated by a shareholding in the company or entity that produces andmarkets the pearls;• employment as labourers and, with appropriate training, as divers and possibly inmanagerial roles on the pearl farm;• collection of wild shell and their sale to the pearl farm during the period of initialestablishment;• collection and processing (cleaning and re-stringing) of spat, and their sale to the pearlfarm;• eventually, small-scale farming pearl farming, with support and assistance (materials,technical advice, seeding and marketing) from the main farm.These options are discussed in more detail in the sections below.6.2. Lease payments and access royaltiesPossible arrangements under which leases over areas of water and adjacent land suitable forpearl farming sites are described in more detail in a companion report to this document(Hughes, 2008). That report provides information on land tenure in Solomon Islands andrecommends that prospective investors consider basing their operations on registered land,which comprises about 10% of land in Solomon Islands, rather than customary land, which

Page 21constitutes the remainder. Registered land is considered legally secure whereas land that isnot registered can be subject to dispute.6.3. Shareholding or business participationSome business operators in rural areas have successfully engendered community goodwilland support by allowing local people to become shareholders in the business and participatein its profits through payment of dividends or other forms of benefit.In one example a company in PNG (not a pearl farming company) invited local people to buyshares at a cost of 1 kina (about US 30 cents) each. The company declared a dividend ofabout 10% of the share value twice a year, and also held an annual general meeting duringwhich all shareholders were provided with information on company operations and invited toexpress their views on aspects of company business. The AGM was accompanied by customperformances and a feast, all paid for by the company. This arrangement generatedconsiderable goodwill among the local community and permitted the company to go about itsbusiness without undue obstruction or interference. The low cost of entry allowed evenmembers of the community with little money to buy a few shares and participate in bothdividends and the AGM, which ultimately became a much-anticipated community event.In another example, possibly more relevant to the present case, a pearl-farming companyendowed the local community that owned traditional fishing rights over the area where thepearl farm was located with a shareholding which entitled it to 2.5% of the gross sales valueof pearls produced by the farm. These funds were distributed to the community according torules laid down in an agreement signed by the community’s traditional leaders. In practice, aproportion of the funds were retained by the traditional leadership, and a proportion spent oncommunity projects or distributed among individuals as agreed internally by communitymembers. The community has the option to increase its shareholding through purchase ofadditional shares, at a fair cost to be agreed between the company and the community, butthis has not so far been taken up.Both of the companies mentioned above have also undertaken additional activities intendedto provide community benefits and maintain goodwill. These have included financing, in fullor in part, of community projects such as buildings and infrastructure (toilets, water pipes,solar panels, etc.), contributions to community fund-raising events, providing scholarships forpromising local students, and sponsoring youth groups to carry out beach or village cleanups.As always in such situations there is a need to strike a balance between the companyraising ever-increasing expectations within the community and being regarded as a cash cow,and ensuring good community relations.There are numerous ways in which communities can participate in or benefit from thebusiness activities of a pearl farm based in their locality. Detailed arrangements would needto be worked out through negotiation between the operator and the community, based on theneeds and aspirations of the community and the financial realities of the pearl farmingoperation. Ideally the arrangements put in place should ensure that benefits flow to allcommunity members, rather than just a few landowners or chiefs, although recognition oftraditional authority or seniority will also be important. As in the examples above, a mixtureof individual shareholding, payments to traditional or community leaders, and projects thatbenefit the community at large would seem appropriate.6.4. EmploymentPearl farming is relatively labour-intensive. In the initial set-up phases there will be a need toconstruct and set anchors, farm lines and buoys, and any over-water structures required.

Page 22Much of this work will have to be carried out by SCUBA divers, who will also be needed onan ongoing basis for inspection and maintenance of the underwater parts of the farm. Otherongoing work involves the making and deployment of spat collectors, chaplets, new farmlines, and maintaining boats and outboards. Once the farm has shell under culture, they needto be cleaned every 3-4 months. This involves hauling the shell onboard a boat or barge andscraping or scrubbing off any fouling organisms that have accumulated, then transporting thewaste back to shore for dumping.The amount of labour required at different stages of the farm’s operation will depend on thesize of the installation and the number of shell under culture. A mid-size farm with 50-100,000 shell under culture may require 4-6 full-time labourers and two SCUBA divers, withadditional help needed during busy seasons. It would be normal and appropriate for theseworkers to be sourced from the local community, including SCUBA divers, who should betrained to professional standards by the company. It would also be normal for SolomonIslanders, preferably from the local community if this is possible, to be employed as foremenor middle-level farm managers. While not an appropriate subject for inclusion in aquacultureregulations, policy should dictate that pearl farmers would not be eligible for work permitsallowing foreign staff to work in these positions.The same is not true in regard to seeding technicians. The entire business operation dependson the qualities and abilities of these individuals, who are in fact not mere technicians butqualified and highly experienced veterinary surgeons. In other countries localisation policieshave forced pearl farmers to hire locally trained technicians who have generally performedless well than foreign personnel, resulting in higher levels of shell mortality and pearlrejection, and lower pearl quality. In addition, the decline in pearl quality and increase inblack marketing of pearls in French Polynesia and Cook Islands has been attributed in part tothe increase in local technicians working in the industry. Solomon Islanders should beencouraged to undertake training as seeding technicians, and to sell their servicescompetitively on the free market. However any attempt by Government to force thelocalisation of this profession or regulate the use of foreign technicians will damage the pearlfarming business and act as a major deterrent to prospective investors. Government policy onpearl farming needs to clearly state that there is no intention to exclude foreign seedingtechnicians from operating in Solomon Islands in the future.6.5. Spat and shell collectionIn the start-up phase of a pearl farming project there will be a desire to establish a stock ofimplantable oysters as soon as possible by harvesting young adult shell from the wild, andthis represents another income-earning opportunity for local communities. As the farmmatures, shell will start to be sourced from spat collection or hatcheries, and the need foradults harvested from the wild will progressively decrease.Over the longer term, the greatest opportunity for local communities to benefit from pearlfarming activities in their area will be through spat collection, which might operate in anumber of ways:• in some situations, individuals or families build and deploy their own spat collectors,check them, harvest the spat when ready, and sell them to pearl farmers at a typicalcost of US$ 1 per spat (7-10 cm in dorso-ventral measurement);• in another situation, the pearl farming company sets its own spat collectors, butengages a women’s group from within the community to harvest and process the spat.The collectors are picked up by the company boat and taken to a simple processing

Page 23shed on the shore, where women nominated by the group pick off the spat (around 6-8cm DVM) and drill them for hanging on grow-out ropes. Around four months laterthe same process is used to harvest the grow-out ropes and re-hang the shell onchaplets. For each of these stages the women’s group is paid about 10 US cents peroyster. The total payment depends on the number of spat collected and processed, butis typically of the order of USD 20,000 per season. The women’s group makes thedecision about how workers and members will be remunerated, and what (if any)community projects the funds received will support.As regards Solomon Islands, the latter scenario is probably the most relevant. Under thisarrangement there are no capital costs to the women’s group as the pearl farming companyprovides all of the equipment required for processing. As the industry develops, someindividuals or groups might progress to the stage where they provide these facilitiesthemselves, and are able to earn higher amounts per spat as a result.6.6. Small-scale pearl farmingIt may be anticipated that, over time, community- or smallholder-based spat collection couldevolve to small-scale pearl farming operations in which individuals or community groupsretain some of the spat that they collect and use it for on-growing, seeding and eventualharvesting. These additional stages add complexity and cost to the spat collecting operationand therefore require greater organisational, management and technical skills, more capital,and a longer time horizon. At some stage such operations will require separate aquaculturelicences and policy must dictate when this occurs. Additionally, the commencement offoreign investment projects may encourage domestic investors to enter the industry, possiblyin partnership with existing or new foreign operators. In either case, the result may be agrowing number of relatively small-scale entrants to the industry over a period of 5 – 10years or more.Experience in French Polynesia and Cook Islands shows that many problems arise whensmall, inexperienced and unregulated operators start to account for a significant proportion ofindustry production. Small farms are the primary source of poor-quality and black marketpearls and do not have the management discipline or financial capacity to reject low-valueproduct in order to improve the value of better-grade pearls. As discussed above, poor qualitycontrol threatens the industry and policy may need to contain mechanisms for regulating salesby small-scale operators.In other Pacific Island countries, attempts to regulate and manage small farmers to keepinferior pearls off the market have been only partially successful. In a country such asAustralia, with significant resources to spend on monitoring, surveillance and enforcement, aregulatory approach to pearl quality may be feasible. However in most Pacific Islandcountries, including Solomon Islands, it would be naïve to imagine that governmentregulations or centralised marketing run by a public body would be effective in deterringsmall farmers from selling low-quality pearls and undermining the industry as a whole.This situation thus presents something of a quandary. Entry into the real business of pearlfarming, rather than just spat collection, could present significant opportunities for SolomonIsland communities and domestic investors; but in other Pacific Island countries wheresmallholders have become a major part of the industry, problems of pearl quality have arisenwhich have caused the industry to decline.The most promising way to address this problem in Solomon Islands, if and when it shouldarise, would seem to be to encourage the development of a ‘nucleus-estate’ model in whichsmallholder farms are required to be linked with larger commercial enterprises which can

Page 24provide them with technical and material support, including marketing. It could be envisagedthat the process of spat collection could progressively be upgraded to small-scale pearlfarming through a process in which communities or individuals form partnerships withcommercial pearl farms. In that case the commercial pearl farm would provide support in theform of materials, technical assistance and, importantly, seeding. In exchange the smallfarmer would be obligated to have his pearls harvested under the supervision of thecommercial operator, and included in that operator’s marketing arrangements. Therelationship would need to be laid down in clear and immaculate detail under a bindingcontract that committed both parties to pre-determined and transparent dealings with eachother. Similar arrangements would apply in the case of partnerships or joint ventures thatmight develop between the commercial pearl operation and domestic investors. Licensing ofsmall farms could be a useful stage for the encouragement of the nucleus-estate model.This is unlikely to be a perfect arrangement in all cases, or universally supported.Smallholders in other countries have entered into arrangements with large-scale operators andsubsequently claimed to have been cheated on marketing deals, especially where complexmulti-company arrangements permit transfer pricing and somewhat subjective attribution ofcosts. Conversely, larger operators often lose patience with small farmers whose demands forfinancial and material support become excessive, who fail to follow proper husbandry or farmmaintenance practices, or who persist in trying to market inferior quality pearls despite themarketing agreements in place. However in the absence of better alternatives the nucleusestatemodel seems to be the option of choice. This approach is being used in another pearlfarming operation in the region but is relatively new and thus has not so far stood the test oftime.In any case this is not likely to be an issue in the near future. It will probably take 5 to 10years at least before the industry develops to a point where small-scale pearl farmingbecomes a management issue. However the problems need to be anticipated so that, in theevent that an industry does develop, it does not then become undermined by the qualityproblems that have arisen elsewhere. Government policy on pearl farming needs to recognisethe need to control indiscriminate pearl marketing, possibly by licensing marketing as aseparate activity to farming itself. Under such an arrangement pearl marketing licences wouldonly be issued to larger-scale operations with sufficient demonstrated production volume toparticipate in industry auctions and major marketing events.7. INVESTOR INCENTIVESThe main natural attractions for pearl farming in Solomon Islands have already beenidentified in section 4.1 as multiple farming sites, high pearl oyster growth rates, and lowlabour costs. Additional incentives that could be offered by Government or the WorldFishCenter are described by Hughes (2008) in an accompanying report and are summarisedbelow.7.1. Duty and tax reliefGiven that pearl farming is an industry that requires long time and investment horizons thereare strong arguments for providing full or partial duty relief on the importation of materialsand supplies needed to establish the pearl farm, and tax relief for an initial period of tenyears. Many other countries offer such concessions for pioneer and rural industries, and forSolomon Island not to do so would reduce the relative attractiveness of the country to foreigninvestors.

Page 257.2. Employment of seeding techniciansAs noted earlier, any pearl farming industry that develops in Solomon Islands will depend onthe services of foreign seeding technicians, the majority of whom are Japanese. In othercountries regulations requiring localisation of this work has led to a variety of problems forthe industry. A clear statement by the Solomon Islands Government that licensed pearlfarming operators will be entitled to receive work permits for foreign seeding technicians willbe an encouragement to investors with long-term investment horizons.7.3. The Worldfish facilityOne drawcard for a pearl farmer considering an investment in Solomon Islands is the existingWorldFish aquaculture facility at Nusa Tupe, in Western Province. Any investor who couldgain access to this facility would immediately short-circuit the process of identifying asuitable culture site and negotiating a lease agreement, and constructing basic operatingfacilities, including a hatchery. The stock of 2-3,000 adult shell currently being held at thefacility could be implanted with nuclei immediately, so that the farm would commencegenerating revenue in two years rather than the usual 4-5. Spat collection and/ or hatcheryproduction arrangements would still need to be developed so that the size of the farm couldbe progressively increased, but the existing stock would accelerate the process of achievingpositive cash flow and profitability.A cooperative venture with the WorldFish Center should thus be a significant attraction toany investor interested in exploring pearl farming in Solomon Islands. This should make itpossible to leverage a cooperative venture which allows WorldFish and the Solomon IslandsGovernment to continue research on aspects of pearl oyster biology and life history (growthrates, spat collection success, etc) or to access research information obtained by thecommercial partner. Ultimately, if initial success was achieved at the WorldFish site, thecompany would need to negotiate its own site and facilities.8. FUTURE MANAGEMENT ARRANGEMENTS FOR PEARL FARMINGThere is currently an absence of appropriate management legislation and procedures relevantto a pearl farming industry, should it develop in Solomon Islands. A relatively simple initialmanagement framework is proposed during what will hopefully comprise the industry’s startupphase. This is in three parts:• a Pearl Farming Policy Statement, for government consideration and approval;• a Pearl Farming Regulation, laying out the rules under which pearl farming must becarried out and including a schedule that stipulates the data to be provided to theMFMR by licence-holders; and• Pearl Farming Licence application and issuance forms, which stipulate specific termsand conditions for two types of licence:o Commercial Pearl Farming Licence, intended for larger-scale operators withsignificant numbers of shell under culture and who need to bring into SolomonIslands expatriate managers and pearl seeding technicians;o Pearl Hatchery Licence, intended to supplement the Commercial PearlFarming Licence in the event that farmer wishes or needs to operate ahatchery. (This also caters for the possibility that a hatchery operation mightdevelop to service multiple pearl farms);These documents, which integrate the principles and recommendations presented in thisreport, have been drafted in late 2008, in consultation with MFMR, the Solomon IslandsAttorney General and their advisors. The focus at this stage is on pearl oyster health

Page 26management, disease control, environmental management and impact mitigation from largescaleoperations, and on ensuring community benefits. It is not proposed at this point toregulate spat collection or small-scale pearl farming by local individuals or communities,since both activities will take several years to develop. It would also be premature at thepresent time to establish regulations relating to pearl marketing and quality control, butcontrols on all these aspects may be necessary in the future, depending on developments overthe next few years. If commercial pearl farming commences in Solomon Islands as hoped,then the regulations should be reviewed after an appropriate period (no more than 5 years)and amended as necessary. Such a review should take place with the full participation of anypearl farmers who may be operating in the country by that time.The Solomon Islands Ministry of Fisheries and Marine Resources is currently preparing anoverall policy framework to guide the development and management of the fisheries sector,and is also reviewing the current fishery legislation with a view to updating and improving it.The draft Pearl Farming Policy Statement, Regulation and Licence documents have beenprepared in such a way that they can be adopted immediately, or integrated with only limitedamendment into the broader policy and legislative instruments currently being prepared.9. BIBLIOGRAPHYAnon. (2008). La Perle en Grande Difficulté. Newspaper article, 21 May 2008. LesNouvelles de Tahiti.Berthe, F. C. J. and J. Prou (2007) The Review The French Polynesian experience. Pp. 103-109 in: Bondad-Reantaso, M. G., S. E. McGladdery and F. C. J. Berthe (2007). Pearloyster health management: A manual. FAO Fisheries Technical Paper No. 503.Food and Agriculture Organization of the United Nations, Rome, Italy. 120p.Cartwright, I. and A. Baiteke (1997). Pearl Oyster Resource Development in the PacificIslands. ACIAR Project Review. Australian Centre for International AgriculturalResearch, Canberra, Australia.Ciffolilli, A. (2003). Draft Report on the Review of Legislative Arrangements in theAquaculture Industry in Western Australia. Western Australian Ministry forAgriculture, Forestry and Fisheries. Perth, Australia.Coalition for National Unity and Rural Advancement (2008). Translation andImplementation Framework. Solomon Islands Government, Honiara, SolomonIslands.Cook Islands Government (2005). Manihiki Pearl And Pearl Shell By-Laws 2005.Government of Cook Islands, Avarua, Rarotonga.Cook Islands Ministry of Marine Resources (2004). Draft Manihiki Pearl FarmingManagement Plan 2004 – 2104. Government of Cook Islands, Avarua, Rarotonga.Cook Islands Ministry Marine Resources (2005). Draft Code of Practice for ResponsiblePearl Farming in Manihiki Lagoon. Government of Cook Islands, Avarua,Rarotonga.DeVoe, R. and C. Hodges (2002). Management of marine aquaculture: the sustainabilitychallenge. Pp. 21-24 in: Stickney, R. and J. McVey. (2002). Responsible MarineAquaculture. World Aquaculture Society, CABI Publishing, New York, USA.Diggles, B. K., P. M. Hine and J. Carson (2007). The Cook Islands experience: pearloyster health investigations. Pp. 71-85 in: Bondad-Reantaso, M. G., S. E.

Page 27McGladdery and F. C. J. Berthe (2007). Pearl oyster health management: Amanual. FAO Fisheries Technical Paper No. 503. Food and Agriculture Organizationof the United Nations, Rome, Italy. 120p.Evans, D., J. Raj and D. Williams (2003). Review of aquaculture policy and legislation inthe Pacific Island Region. SPC Aquaculture Technical Papers. Secretariat of thePacific Community, Noumea, New Caledonia.Fassler, R. C. (2002). Black pearl farming: A brief overview. SPC Pearl OysterInformation Bulletin #15, 28-29. Secretariat of the Pacific Community, Noumea, NewCaledonia.Fletcher, W., K. Friedman, V. Weir, J. McCrea and R. Clark. (2006). EcologicallySustainable Development Report Series No. 5: Pearl Oyster Fishery. WesternAustralia Department of Fisheries, Perth, Western Australia.Hawes, I and Mesia, P. (2007). Past research and development on blacklip pearl oystersin Solomon Islands. Produced by WorldFish Center, Solomon Islands and Ministryof Fisheries and Marine Research, Solomon Islands. 34 pp.Hodge-Kopa, L. (2008). Solomon Islands Fisheries and Marine Policy Statement and theState of the Fishery/ Oceans Report: Concept Note, 17 June 2008. Discussiondocument, Solomon Islands Marine Resources Organisational Strengthening Project,Honiara, Solomon Islands.Hong Kong Territorial Administration (1984). Laws of Hong Kong Chapter 307: PearlCulture (Control) Ordinance. Territorial Administration of Hong Kong, Kowloon,Hong Kong.Hunter, J. (2006). Pearling Conservancy: Draft Code of Environmental Practice forPearl Farming in Fiji. Justin Hunter Pearls Ltd., Savusavu, Fiji.Hughes, A.V. (2008). Solomon Islands: The Investment Climate for Pearl Farming.Report prepared by A.V. Hughes, Vona Vona, Solomon Islands.Jones, J. B. (2007) Review of pearl oyster mortalities and disease problems. Pp. 61-70 in:Bondad-Reantaso, M. G., S. E. McGladdery and F. C. J. Berthe (2007). Pearl oysterhealth management: A manual. FAO Fisheries Technical Paper No. 503. Food andAgriculture Organization of the United Nations, Rome, Italy. 120p.Jones, J. B. (2007) The Australian experience: pearl oyster mortalities and diseaseproblems. Pp. 87-93 in: Bondad-Reantaso, M. G., S. E. McGladdery and F. C. J.Berthe (2007). Pearl oyster health management: A manual. FAO FisheriesTechnical Paper No. 503. Food and Agriculture Organization of the United Nations,Rome, Italy. 120p.Lindsay, S. (2007). Solomon Islands Aquaculture Sector Assessment. Solomon IslandsMarine Resources Organisational Strengthening Project, Honiara, Solomon Islands.McGladdery, S. E., M. G. Bondad-Reantaso and F. C.J. Berthe (2007). Pearl Oyster HealthManagement. Pp 19-58 in: Bondad-Reantaso, M. G., S. E. McGladdery and F. C. J.Berthe (2007). Pearl oyster health management: A manual. FAO FisheriesTechnical Paper No. 503. Food and Agriculture Organization of the United Nations,Rome, Italy. 120p.Mills, D., A. Tlili, and J. Norton. (1997). Large-scale anaesthesia of the silver-lip pearloyster, Pinctada maxima Jameson. Journal of Shellfish Research 16: 573-574

Page 28Ministry of Development Planning and Aid Coordination (2008). Medium-TermDevelopment Strategy, 2008 to 2010. Government of Solomon Islands, Honiara,Solomon Islands.Ministry of Fisheries and Marine Resources (2007). Aquaculture Development Plan.Government of Solomon Islands, Honiara, Solomon Islands.Ministry of Natural Resources (2003). Fisheries Regulations 2003 (draft). Department ofFisheries and Marine Resources internal memorandum. Government of SolomonIslands, Honiara, Solomon Islands.Northern Territory State Government (1998). Pearl Oyster Culture Industry ManagementPlan 1998. State Government of Northern Territory, Darwin, Australia.McCallum, B. (2007). Yannirie Solar Salt – Environmental Review and ManagementProgramme (ERMP Assessment 1521). Submission to Government on behalf of theWestern Australia Pearl Producer’s Association in response to a proposal to establishlarge-scale salt mining adjacent to a pearl farming area.Pearling Industry Advisory Committee (2005). Review Of Pearl Oyster Hatchery Policy:Phase II – Policy Direction. Fisheries Occasional Publication No. 27, WesternAustralian Department of Fisheries, Perth, Western Australia.Ponia, B, W. Nash and J. Wani (2003). Principles for the introduction and translocationof aquatic organisms for aquaculture and culture-based fisheries. SPC FisheriesNewsletter No. 106. Secretariat of the Pacific Community, Noumea, New Caledonia.Prigent, P. and G. Blanchet (2002). Évaluation des programmes 5e, 6e et 7e FED‘Perliculture en Polynésie Française’. Océanic Développement Ltd.Solomon Islands Government (2007). The Environment Regulations, 2007. Subsisdiarylegislation under the Environment Act 2006 (No. 8 of 1998). Government ofSolomon Islands, Honiara, Solomon Islands.Solomon Islands Government (1998). The Fisheries Act 1998 (No. 6 of 1998). Governmentof Solomon Islands, Honiara, Solomon Islands.Southgate, P. C. (2007) Overview of the Cultured Marine Pearl Industry. Pp. 7-17 in:Bondad-Reantaso, M. G., S. E. McGladdery and F. C. J. Berthe (2007). Pearl oysterhealth management: A manual. FAO Fisheries Technical Paper No. 503. Food andAgriculture Organization of the United Nations, Rome, Italy. 120p.The Ecology Lab (2008). Abundance, size structure and quality of silver-lip pearl oysters inSolomon Islands. Produced by The Ecology Lab, Pty, Sydney, Australia. 34 pp.Western Australia Fisheries Department (2006). Department of Fisheries Report onOperations 2005. State Government of Western Australia, Perth, Western Australia.

Page 29Solomon Islands Pearl Farming Regulation- - - - - - - - - -A RegulationTo Control the Development of the Pearl Farming Industry in Solomon Islands.1. Short Title and commencement- - - - - - - - - -Division I. Preliminary(1) This Regulation may be cited as the Pearl Farming Regulation 2008 and shall comeinto operation on such date as the Minister may appoint by notice published in the Gazette..2. Interpretation(1) In this Regulation, unless the contrary intention appears:‘Act’ means the Fisheries Act 1998;‘chaplet’ means a length of rope or line, suspended vertically from the mainline of afarm line, on which individual pearl oysters are hung, whether or not in bags, cages orother enclosures;‘Director’ means the Director of Fisheries as defined in Section 2 of the Act;‘farm line’ means an assemblage of lines, ropes, anchors and floats used for thepurpose of suspending adult pearl oysters in coastal waters so that they can grow in amanner that is easily accessible for pearl farming;‘float line’ means the line connecting a float to the mainline of a farm line or spat linein order to prevent it from sinking;‘hatchery’ means a facility used for the purpose of propagating juvenile pearl oysters;‘mainline’ means the horizontal part of a farm line or spat line, from which chapletsor spat collectors are hung;‘pearl farming’ means the rearing and culturing of pearl oysters in coastal waters, theseeding of pearl oysters, and the harvesting, processing and marketing of pearls, andincludes the process of spat collection;‘pearl farming facility’ means the buildings, structures, underwater lines, floats,rafts, anchors and other infrastructure used for pearl farming, including hatcheries;‘pearl farming lease’ means a lease of land, water, sea or part thereof for purposes ofaquaculture, and includes a sub-lease of an existing facility to a third person;‘pearl oyster’ means a bivalve mollusc of the species listed in Schedule 1;‘licence’ means a licence to carry out pearl farming issued under this Regulation.‘licensee’ means the holder of a licence granted under this Regulation.‘person’ means a natural person or a body corporate;‘Principal Licensing Officer’ means such fisheries officer as appointed under theAct;

Page 30‘seeding’ means the implantation of artificial nuclei of any type into pearl oysters forthe purpose of producing pearls, and includes half-pearls;‘spat’ means juvenile specimens of pearl oysters after metamorphosis and settlementfrom their larval stages;‘spat collector’ means a device, typically made of frayed rope, small-mesh netting, ortwigs, and typically no more than 2 metres in length and 50cm in thickness, fixed to aspat line and suspended in the water for the purpose of attracting larval pearl oystersand promoting their settlement and metamorphosis;‘spat collection’ means the process of deploying spat collectors in coastal waters andsubsequently harvesting the spat collected on them, either for the purpose ofproducing pearls, or for sale to other pearl farmers;‘spat line’ means an assemblage of lines, ropes, anchors and floats used for thepurpose of suspending multiple spat collectors in coastal waters.(2) This Regulation shall apply to the farming and processing of those species listed inSchedule 1 to this Regulation. The Director may, by notice published in the GovernmentGazette, amend the schedule whenever necessary.Division II. Activities requiring a licence(2) Harvesting of pearl oysters from the wild, or collection of pearl oyster spat, may bepractised without a specific licence by:(a)(b)(c)any licensee holding a licence issued under this regulationany Solomon Islander;any village group, community group or community-based organisation.(2) Unlicensed individuals, groups or organisations collecting adult pearl oysters or theirspat may only do so for the purpose of selling the spat so collected to pearl farming facilitiesor operations in Solomon Islands and licensed under this Regulation.(3) All other activities relating to pearl farming, including but not limited to growing ofspat to adult size, seeding of pearl oysters, harvesting of pearls and operation of hatcheriesmay only be carried out by holders of a valid licence issued under this Regulation.Division III. Licensing3. No pearl farming without a valid licence(1) No person shall rear, hatch, breed, farm, culture, take or hold pearl oysters for sale ortrade, other than the collection of wild pearl oysters for sale to pearl farms, and the collectionof spat using spat collectors, without a valid licence issued under this Regulation.(3) Any person who breeds, farms, rears, cultures, takes or holds pearl oysters for sale ortrade, other than the collection of wild pearl oysters for sale to pearl farms, and the collectionof spat using spat collectors, without a licence shall be guilty of an offence and liable to a finenot exceeding fifty thousand dollars.

Page 314. Types of licence(1) An application for a licence shall be made in the prescribed form to the Director.(2) Subject to these regulations the Director may, on payment of the prescribed fee, grantto an applicant one of the following types of licence:(a)(b)a Pearl Farming Licence;a Pearl Hatchery Licence.(3) Subject to payment of the prescribed fees, an applicant may apply for one or bothtypes of licence.(4) The prescribed fees for initial application and renewal of a licence are shown inSchedule 2 to this regulation. The Director may, by notice published in the GovernmentGazette, amend the schedule whenever necessary.(5) Every application for a licence shall contain:(a)(b)(c)(d)(e)(f)(g)(h)details of the type of licence for which the application is made;details of the species of pearl oysters to be farmed;plans relating to the construction, development or modification of the pearlfarming facility to which the application relates;details of the location of the pearl farming facility and of all places at whichthe applicant intends to collect spat and to breed, rear, hold and process pearloysters;approvals required under any other law for the time being in operation inSolomon islands;details of the gear, tools, equipment, chemicals and any noxious agents that theapplicant intends to use in connection with the operation of the pearl farmingfacility;details of any lease entered into for the purposes of pearl farming;such other information as may be required by the Director for processing ofthe application.(6) Any person who acquires or procures a licence on the basis of false information beingsupplied in such person’s application shall be guilty of an offence and liable to a fine notexceeding fifty thousand dollars, plus cancellation of licence.5. Period of validity of licence(1) Licences shall be issued for an initial period of ten years. Licences shall be renewedannually subject to the following conditions:(a)(b)payment of the prescribed renewal fee;compliance by the Licensee with the provisions of this Regulation.(2) At the time of renewal, the term of expiry of a licence shall be extended by a furtherperiod of one year, such that the period of validity of the licence is restored to ten years oneach renewal.

Page 326. Provision of statistical information(1) Any licensee holding a licence issued under this Regulation shall be required toprovide information on the licensed pearl farming operation to the Director in a form and at afrequency as he may reasonably require in order to:(a)(b)ensure the effective management of the pearl farming industry in SolomonIslands; and;monitor compliance by the licensee with the provisions of this Regulation andany special licence conditions that may apply.(2) Information so supplied may be included in aggregate form into statistical summariesor other public information documents produced by the Director or his agents, provided thatsuch inclusion is done in a manner which prevents detailed identification of the licensee’sactivities by third parties.7. Pearl Farming Licence(1) A Pearl Farming Licence permits the licensee to carry out farming of pearl oysters incoastal waters, including the collection of spat, the growing of juvenile and adult pearloysters, the seeding of pearl oysters and the harvesting and marketing of pearls. A PearlFarming Licence does not permit the licensee to operate a hatchery.(2) A Pearl Farming Licence granted under this Regulation shall be subject to thefollowing conditions:(a)(b)(c)the licensee is permitted to collect pearl oyster spat from the wild usingartificial spat collectors;the licensee is permitted to purchase wild pearl oysters and their spat fromcommunities or individuals;the licensee is permitted to purchase farmed adult pearl oysters from anotherholder of a Pearl Farming Licence or a Pearl Hatchery Licence.(3) The Director may specify additional conditions in relation to any Pearl FarmingLicence issued under this Regulation.8. Conditions of Pearl Hatchery Licence(1) A Pearl Hatchery Licence permits the licensee to operate a hatchery for the purpose ofcausing adult pearl oysters to reproduce in captive conditions, growing in captive conditionsthe larval and juvenile pearl oysters resulting from such reproduction, and transferring thejuvenile pearl oysters to licensed pearl farming operations in coastal waters. A Pearl HatcheryLicence does not permit the licensee to operate a pearl farm.(2) The Director may specify additional conditions in relation to any Pearl HatcheryLicence issued under this Regulation.9. Review, variation or alteration(1) The conditions prescribed in a licence issued under this Regulation may be reviewed,varied or altered by the Director. Any such variation shall be communicated to the Licenseewithin seven days of such action.

Page 3310. Licence to be displayed(1) A licence issued under this Regulation must be displayed in a prominent place at orwithin the vicinity of the location prescribed in the licence for the operation of the pearlfarming facility.(1) Any licensee who fails to display the licence at the prescribed location shall be liableto a fine not exceeding ten thousand dollars.11. Licence not transferable(1) No licence issued under this Regulation shall be transferable except with the writtenpermission of the Director.(2) Notice of the sale or disposal of a pearl farming facility operating under a licenceissued under this Regulation shall be sent to the Director at least twenty-one days before suchtransaction is concluded.(3) Any person who transfers a licence issued under this Regulation without theDirector’s consent commits an offence and shall be liable to a fine not exceeding one hundredthousand dollars.(4) Any person who knowingly acquires a licence to which the Director’s writtenpermission is not given or is yet to be given commits an offence and shall be liable to a finenot exceeding fifty thousand dollars.(5) Any licence transferred without the Director’s written permission shall be deemedinvalid.12. Register to be maintained(1) The Director shall maintain or cause to be maintained a register which shall containparticulars of licensees and permit holders and of transfers, variation of licences or permitconditions, expiry, suspension or cancellation of licences or permits.(2) The register shall be made available on request to any interested person.(3) The Director may charge a fee for the examination or obtaining a copy of the registerby interested persons.13. Director may cancel licence(1) The Director may cancel, revoke or suspend a licence in any of the followingcircumstances:(a)(b)(c)where a licensee is grossly in breach of this Regulation or the conditionsprescribed in the licence;a licence is acquired on the basis of false information;a licensee has committed an offence not warranting immediate suspension orcancellation of the licence but has nonetheless committed the same or relatedoffence repeatedly on at least three occasions.(2) Where a licence has been suspended, revoked or cancelled, the licensee shall beinformed by the Director of the suspension, revocation or cancellation within seven days ofsuch action.

Page 3414. Aggrieved person may appeal(1) Any person aggrieved by the actions of the Director in refusing to issue or renew alicence, or in cancelling, revoking or suspending a licence may, within thirty days of receiptof notification of such decision, appeal to the Minister.Division IV. Pearl farming operations15. Area and location of pearl farming facilities(1) Details of the location and surface area of the land and coastal waters to be occupiedby the pearl farming facility shall be provided to the Director during the process of applyingfor a Pearl Farming Licence.(2) No pearl farming facility shall be situated within 5 kilometres of another pearlfarming facility. No licence for a pearl farming facility shall be issued if there is a preexistingpearl farming facility within five kilometres of the proposed location.(3) No pearl farming facility shall be relocated over a distance of more than one kilometrewithout the prior written permission of the Director. Where such a relocation is proposed, theDirector may at his discretion require the licensee to submit a new licence application relatingto the proposed relocation.(4) For the purposes of clauses 15(2) and 15(3), distances between pearl farming facilitiesshall be taken as the shortest distance between them measured over water.(5) Any changes in the extent of a pearl farming site or its boundaries, which do notinvolve relocation over a distance of more than one kilometre, whether or not accompaniedby a change in lease arrangements relating to the pearl farming facility, shall be notified tothe Director within seven days of the changes taking place.16. Pearl oyster stock size and stocking densities(1) The maximum number of pearl oysters allowed to be held in coastal waters at anypearl farming facility shall be one million (1,000,000). No pearl farm shall hold more thanthis number of pearl oysters, irrespective of their age, size, or stage of life.(2) The limit referred to in clause 16(1) shall not include spat which have settled naturallyon spat collectors and which have not yet been harvested.(3) Notwithstanding the provisions of clause 16(1), the maximum areal density of pearloysters allowed to be held in coastal waters in any part or sub-area of any pearl farmingfacility shall be one hundred thousand oysters (100,000) per hectare.(4) Notwithstanding the provisions of clauses 16(1) and 16(3), the maximum volumetricdensity of pearl oysters allowed to be held in coastal waters in any part of any pearl farmingfacility shall be one pearl oyster per cubic metre of water occupied by the farm lines.(5) For the purposes of this Regulation the surface area, areal stocking density, watervolume and volumetric stocking density of the pearl farm shall be calculated according to themethodology described in Schedule 3.17. Location of farm lines and spat lines(1) All farm lines and spat lines shall be fixed to the seabed with man-made anchors usedspecially for that purpose.(2) Anchors shall be set in areas of sand, mud or other sediment sea floor and shall not beplaced in areas of live coral.

Page 35(3) Fixing of farm lines and spat lines to coral heads or other natural marine features isnot permitted.(4) No farm lines or spat lines shall be located:(a)(b)(c)within 100 metres of the coast or of any reef;in waters having a depth of less than 20 metres;above areas of living coral.(5) Farm lines shall be set such that there is a minimum distance of 10 metres betweenthem.(6) Spat lines shall be set so that there is a minimum distance of 5 metres between them.(7) Farm lines and spat lines shall be set so that all ropes and lines are at least 2 metresbelow the surface of the sea.(8) Buoys and floats used to support farm lines and spat lines shall be clearly markedwith the name and licence number of the licensee to whom they belong.18. Over-water structures(1) Any over-water structures, including seeding platforms, guard sheds and watchtowersmust be built with minimum excavation and in such a way as to minimise damage to coralsand the adjacent environment.(2) The use of anti-fouling paints or building materials treated with toxic chemicals thatmight leach into the water is prohibited.(3) Animals, including but not limited to dogs, pigs or chickens, must not be kept onover-water structures.19. Pollution and waste disposal(1) Waste from over-water structures, including but not limited to cleaning products, foodrefuse, toilet flushing waste and other pollutants, must be taken ashore for disposal, and notdischarged into the sea.(2) Cleaning and removal of fouling organisms from pearl shell being held on farm lines,or from spat harvested from spat collectors, shall take place on shore or on a barge, raft orboat. Fouling and other waste must be taken ashore and disposed of on land, and not dumpedin the sea.(3) The use for floats of containers that may have previously contained industrialchemicals is prohibited . Containers that have previously contained food or other non-toxicproducts must be thoroughly cleaned and labels removed before use;(4) Appropriate precautions must be taken to minimise the spillage of fuel and oil into thesea or on land during daily pearl farming operations. Employees should be trained in spillprevention and cleanup.(5) Rubbish and litter must not be thrown into the sea.

Page 36Division V. Importation, movement and export of live pearl oysters20. Importation of pearl oysters prohibited(1) No live pearl oyster may be imported into Solomon Islands from any other country,irrespective of its size, age or stage of life, without the prior written permission of theDirector.(2) Any person who imports a live pearl oyster into Solomon Islands from anothercountry without the prior written permission of the Director commits an offence and shall beliable to a fine not exceeding one hundred thousand dollars.21. Movement of pearl oysters(1) No live pearl oyster may be transported over a distance of more than 25 kilometreswithin Solomon Islands, or exported from Solomon Islands, without the written permission ofthe Director, irrespective of its size, age or stage of life.(2) No pearl oysters known to be infected with contagious diseases or parasites shall bemoved over a distance of more than one kilometre within Solomon Islands.(3) For the purposes of clauses 19(1) and 19(2), distances shall be taken as the shorteststraight line distance between the origin and the destination of the pearl oysters being moved,irrespective of whether measured over land or over water.(4) Any person who transports a live pearl oyster over a distance of more than 25kilometres within Solomon Islands or exports a live pearl oyster without the prior writtenpermission of the Director, or transports a diseased pearl oyster over a distance of more thanone kilometre commits an offence and shall be liable to a fine not exceeding fifty thousanddollars.22. Pearl hatchery to be situated on landDivision VI. Pearl hatchery operations(1) Any pearl oyster hatchery must be situated on land, at least 15 metres inland from thehigh water mark, and 3 metres above the level of mean high water spring tides.(2) No pearl hatchery may be built, established or operated on platforms, rafts or otherstructures situated over coastal waters, coral reefs or other emergent features within coastalwaters.23. Facility to have effluent reservoir(1) Any pearl oyster hatchery for which discharge of water is required must have aneffluent reservoir or sump built to a standard approved by the Director.(2) Waste water from a pearl oyster hatchery must be disinfected or treated by biological,physical or chemical means approved by the Director.(3) No wastewater from a pearl oyster hatchery shall be discharged directly into a river,stream, creek, pond or sea without first being treated at an effluent reservoir.(4) Any person who discharges waste directly into a river, stream, creek, pond or seawithout treating such waste water in an effluent reservoir commits an offence and shall beliable to a fine not exceeding fifty thousand dollars.

Page 3724. Importation of living biological material(1) No living biological material of any kind, including but not limited to algal cultures,may be imported into Solomon Islands for use within a pearl oyster hatchery without theprior written permission of the Director.(2) In applying for permission to import living biological material, the licensee mustprovide a full explanation and justification for the proposed import, including but not limitedto details of:(a)(b)(c)(d)the type and nature of the living biological material to be imported;the source of the living biological material to be imported;the purpose for which the living biological material will be used;the measures to be used to ensure that the living biological material will notenter the natural environment of Solomon Islands.(3) Any person who imports living biological material into Solomon Islands without thewritten permission of the Director for use within a pearl oyster hatchery commits an offenceand shall be liable to a fine not exceeding one hundred thousand dollars.25. No exemption from applicable lawsDivision VIII. Miscellaneous(1) Unless otherwise specified, nothing in this Regulation shall exempt any person dulylicensed hereunder from compliance with the applicable laws of Solomon Islands.26. Minimum fine(1) Any monetary fine to be paid under this Regulation shall not be less than one third ofthe prescribed sum.= = = = = = = = = = =SCHEDULE 1List of species to which this regulation applies(1) This regulation applies to bivalve molluscs of the family Pteriidae, and specifically tothe following species:Pinctada margaritifera – black-lipped pearl oysterPinctada maxima – white-lipped, gold-lipped or silver-lipped pearl oysterPteria penguin – winged pearl oyster(2) The Minister for Fisheries may at his discretion amend this schedule to include otherspecies as required.= = = = = = = = = = =SCHEDULE 2Licence fees(1) The following fees will apply to licences issued under this regulation:(a) Initial fee on first issue of licence: SI$ 20,000(b) Annual renewal fee: SI$ 10,000

Page 38(2) Separate fees are payable in respect of each type of licence issued.= = = = = = = = = = =SCHEDULE 3Method of calculating stocking density(1) For the purposes of this Regulation the surface area occupied by the farm lines isdefined as the average length of the farm lines multiplied by the distance between the farmlines at the extremities of the area occupied by the farm lines.(2) The areal density of pearl oysters shall be calculated as the number of pearl oysters inthe area of the farm lines divided by the surface area of the farm lines, calculated as perclause 1.(3) For the purposes of this Regulation the water volume occupied by the farm lines inany area or sub-area of the pearl farming facility is defined as the surface area (calculated asper clause 1) multiplied by the average depth of the chaplets or other vertical lines on whichthe pearl oysters are hung.(4) The volumetric density of pearl oysters shall be calculated as the number of pearloysters in the water volume of the farm lines divided by the water volume of the farm lines,calculated as per clause 3.= = = = = = = = = = =

Page 39Solomon Islands Pearl Farming Policy StatementThe Government of Solomon Islands notes that research carried out over the past 15 yearsindicates that Solomon Islands is a potentially suitable location for pearl farming. Attributesof the country that are positive for pearl farming include:• natural presence of three species of commercial interest (Pinctada maxima, Pinctadamargaritifera, and Pteria penguin) throughout Solomon Islands;• demonstrated levels of P. margaritifera spatfall sufficient to support commercial pearlfarming;• numerous sheltered coastal lagoons and embayments suitable for pearl farming,widely dispersed throughout the country;• unpolluted coastal waters, a clean marine environment and suitable climaticconditions for pearl farming;• a long-standing (since 1994) prohibition on export of pearl shell from the wild;• abundant unskilled and semi-skilled rural labour available at a cost far below that inother pearl farming locations in the Pacific region;• rural communities eager to support and participate in pearl farming.The Government recognises that development of a pearl farming industry in Solomon Islandshas the potential to deliver a number of benefits to the country, including:• generation of national revenue and foreign exchange through increased exports;• economic diversification;• creation of jobs;• developing new skills for Solomon Islanders; and• providing rural communities with income-earning opportunities;The Government further recognises that development of a pearl farming industry in SolomonIslands is unlikely to occur without foreign investment by experienced pearl farmingoperators. The Government wishes to actively encourage such investment by foreign pearlfarmers with the necessary technical, financial and marketing expertise to successfullycontribute to the development of a pearl farming industry in Solomon Islands. Measures thatthe Government will take to encourage foreign investment in pearl farming include:• consideration of tax concessions for new pearl farming investors for an initial periodof ten years;• issuance of long-term (ten year renewable) licences to approved pearl farmingoperations;• issuance of work permits for foreign workers having skills not available in SolomonIslands, notably senior managers and seeding technicians;• continuation of the existing ban on export of wild-caught pearl shell;• management of the industry to ensure good farm husbandry practices, minimise therisk of pearl shell disease and mortality outbreaks, and mitigate against the transfer ofparasites and pathogens;• environmental regulation of other industries which may have impacts on pearlfarming operations;• regulation of pearl exports to prevent marketing of low-grade or inferior-qualitypearls by small-scale producers who may eventually enter the industry.

Page 40Other forms of government support may also be available to investors, depending on thenature of the proposed pearl farming venture. These may include:• provision of historical information held by the Government that may be relevant topearl farming operations;• access to hatchery and/ or analytical laboratory facilities in which the Government hasan interest;• jointly financed or executed pearl farming research activities;• community extension and training activities by Government in support of pearlfarming development.The Government wishes to ensure that pearl farming investors conduct their operations in amanner that is socially and environmentally responsible, and which provides genuinedevelopment benefits for the country. Factors that will be taken into account whenconsidering pearl farming investment proposals or negotiating cooperative projects thatinvolve the government include:• the degree to which local communities are likely to benefit from the project in termsof employment, collection and processing of spat, lease payments, training and skillsdevelopment, and other advantages;• the likely benefits to Solomon Islands in terms of exports and foreign exchangeearnings;• the commitment of the investor to environmentally responsible operations, asevidenced by the environmental management plan or code of practice for the project.As the Solomon Islands pearl industry develops, the Government will establish andparticipate in consultative mechanisms that will ensure full and open dialogue betweencommercial pearl farmers, participating communities, and relevant government agencies. TheGovernment will work closely with the industry to ensure that pearl farming managementarrangements remain appropriate to the needs and development of the sector, and to ensurethat the interest of all participants are fully protected.= = = = = = = = = =

Page 41Solomon IslandsApplication for Pearl Farming LicenceFisheries Act 1998, Fisheries (Amendment) Regulations 2005,Pearl Farming Regulation 2008Name of applicant........................................................................................................................Address of applicant ..........................................................................................................................................................................................................................................................................If the application is made on behalf of a company,Name of company........................................................................................................................Address of company ....................................................................................................................Registered business number.........................................................................................................This application is for (tick one or both): Pearl Farming Licence Pearl Hatchery Licence Pearl oyster species to be farmed:......................................................................................................................................................................................................................................................Location of pearl farming facility (Specify all places where pearl oysters will be collected,bred, reared, held and processed. Attach map if required).....................................................................................................................................................................................................................................................................................................................................................................The following documents are attached in support of this application.Document Yes No If no, explain whyPearl farming site leaseBusiness or joint venture registrationdetailsPlan of pearl farming site or facilityBusiness plan or project descriptionProvincial business licenceEnvironmental management plan/ codeof practiceEnvironmental development consentList of gear, tools, equipment,chemicals and noxious agents to beusedFee ($ 10,000 per licence)Any other information that the applicant wishes to be considered (attach additional pages ifrequired) ..................................................................................................................................................................................................................................................................................................................................................................................................................................................Date...................................................................Signature ...........................................................

Page 42Solomon IslandsPEARL FARMING LICENCEFisheries Act 1998, Fisheries (Amendment) Regulations 2005,Pearl Farming Regulation 2008Licence No: ___________ for Pearl Farming/ Hatchery operation (delete as appropriate)The holder of this licence is authorised to operate a pearl farming facility at the locationdescribed below for the species listed, and subject to the conditions printed on the reverse ofthis licence, plus any special conditions specified below.Name of licensee..........................................................................................................................Address of licensee ............................................................................................................................................................................................................................................................................Registered business number of licensee ......................................................................................Location of pearl farming facility (attach map if required) ...........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................Species authorised for farming ................................................................................................................................................................................................................................................................................................................................................................................................................Fees Paid:..........................................................Receipt number:................................................Special conditions ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................The holder of this licence shall comply with and ensure the facility is operated in accordancewith the Fisheries Act (1998), the Fisheries (Amendment) Regulations 2005, and the PearlFarming Regulation 2008.Date of issue......................................................Date of expiry ...................................................Authorised at Honiara this (date).................................................................................................___________________________Licensing Officer

Page 43Summary of Pearl Farming Licence conditions(to be printed on back of licence)This summary is provided for convenience and ease of reference. For a full and authoritative list of conditionsapplying to pearl farming operations, refer to the Pearl Farming Regulation 2008.Permitted activities• Deployment and harvesting of spat collectors.• Purchase of spat from individuals, communities, hatcheries and other licensed pearl farmers.• Purchase of adult pearl oysters from local fishermen/ communities, hatcheries and other licensed pearlfarmers.• Rearing and seeding of pearl oysters.• Harvesting, processing and marketing of pearls.Regulations and restrictions• Maximum number of pearl oysters to be held on the farming site is one million• Maximum stocking densities of pearl oysters:o one hundred thousand (100,000) shell per hectare;o one shell per cubic metre of water occupied by the farm lines.For methods of calculating stocking densities, see Schedule 3 of the Pearl Farming Regulation 2008.• Minimum spacing of ten (10) metres between farm lines.• Minimum spacing of five (5) metres between spat lines.• No farm lines or spat lines to be attached to coral heads or other natural features.• No farm lines or spat lines to be set:o within one hundred (100) metres of the coast or any reef;o in waters having a depth of less than twenty (20) metres;o above areas of living coral.• Farm lines and spat lines to be set so that mainlines are at least two (2) metres below the sea surface.• Hatcheries to be located on land, at least fifteen (15) metres from the limit of mean high water springtides, and three (3) metres above it.• Hatcheries must have an effluent disposal reservoir.Activities requiring a special permit• Relocation of pearl farming facility by more than one kilometre.• Transportation of pearl oysters over a distance of more than 25 kilometres.• Importation of pearl oysters from overseas, regardless of size, age or stage of life.• Importation of biological material, including algal culturesActivities not permitted• Use of anti-fouling paints or building materials treated with toxic chemicals for over-water structures.• Keeping of animals on over-water structures.• Disposal of waste, including fouling waste removed from pearl oysters, into the sea.• Use of containers for floats if they have previously contained toxic chemicals.Environmental responsibility• Operators are expected to show responsibility for the marine environment through the application oftheir environmental management plan or code of practice. In particular, operators should:o take action to minimise spillage of fuel and oil during daily operations;ooensure litter and rubbish is not thrown into the sea;ensure staff are properly trained in cleanup of fuel and oil spills, and proper methods of wastedisposal.Other• This licence must be displayed in a prominent place at or within the vicinity of the pearl farmingfacility to which it relates.• Conditions of licence may be reviewed or varied by the Director of Fisheries.• This licence is not transferable.This licence may be cancelled if the licensee breaches the licence conditions or the provisions of the FisheriesAct (1998), the Fisheries (Amendment) Regulations 2005, or the Pearl Farming Regulation 2008.

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