The north Queensland seafood industry is on the cusp of massive expansion, with hundreds of jobs set to be created.

Ayr prawn farm Pacific Reef Fisheries general manager John Moloney said there was huge potential for growth.

"It's currently a 5,000-tonne industry, there's no reason whatsoever it can't be a 20,000-tonne industry," he said.

"It could get even bigger, at 50,000 tonnes it'd be a billion-dollar industry," he said.

The farm doubled its prawn yield in just five years, thanks to advances in production techniques.

They have also begun using bio-retention macro algae to suck up nutrients in waste water, which virtually eliminated any environmental impacts on the Great Barrier Reef.

The improvements have left the industry ripe for expansion and Pacific Reef Fisheries is planning to start construction of a significantly bigger farm.

John Moloney says the demand is there for more prawns. ( ABC News )

"We produce about 1,000 tonnes here, we'll be producing 3,000 to 4,000 tonnes at the new farm, so you're talking a $60 million to $70 million business," Mr Moloney said.

About 200 jobs are set to be created including roles in marine biology, management, and general labouring.

There is no shortage of demand, Mr Moloney said.

"Our customers are screaming for more. They're pretty much saying whatever we can produce they'll take. That's just domestically without even looking at international markets," he said.

Construction of the new prawn farm is expected to start next year.

Thousands of more jobs could follow: JCU

One north Queensland company is speculated to be planning a $1 billion prawn farm in the Northern Territory to supply the high-end Asian market with farmed prawns.

Professor Dean Jerry from James Cook University said thousands more positions could open up as other farms expand.

"Aquaculture is going to be a key industry sector for employment and economic growth, particularly for smaller communities like Bowen and Cardwell where there's not a lot of new industries being developed," he said.

"It's a very intensive industry. When you look at the return on any given piece of land compared to sugar farming or beef cattle, aquaculture returns, per hectare, 10 to 15 times the value of any of these other industries."

James Cook University is working closely with industry to develop world-class systems, as well as training marine biologists and managers to work in the business.

The facility said aquaculture would be a vital source of sustainable food protein in the future.