It is a hot, sunny day on Western Australia's Kimberley coast where the red soil of the pindan meets the sparkling Indian Ocean and where pearlers seek one of the world's best-loved gems.

Key points: Innovation, new markets and a healthier outlook for Australia's pearling industry are starting to pay dividends

Innovation, new markets and a healthier outlook for Australia's pearling industry are starting to pay dividends Almost 12 years ago, a mystery disease led to widespread Pinctada maxima oyster shell mortality in the region

Almost 12 years ago, a mystery disease led to widespread Pinctada maxima oyster shell mortality in the region Companies are responding to changing consumer tastes in a bid to shore-up a sustainable future

Third generation pearler James Brown is sitting down at his family's Cygnet Bay Pearl Farm on the Dampier Peninsula, about 200 kilometres north of Broome, grading this year's harvest with a smile on his face.

"In some ways, this is the unglamorous part of the business," Mr Brown says.

"But this is the one opportunity we've got to assess the success or failure of each crop."

Pearls are graded on five attributes — shape, size, complexion, lustre and colour — which give the ultimate value of a piece.

James Brown is a third generation pearler at Cygnet Bay in WA's Kimberley. ( ABC Rural: Courtney Fowler )

As Mr Brown sorts through the thousands of pearls before him in the same way his father and grandfather have done before him, he feels a sense of hope for the future of his industry.

Pearl farms face mysterious disease

Almost 12 years ago, a mystery disease led to widespread Pinctada maxima shell mortality, wiping out much of the hatchery stock and dramatically reducing the productivity of pearl farms in the Kimberley.

The devastating loss slowed down cultured pearl production in the region over the years to come.

The team at Cygnet Bay responded by trialling different ways of boosting production, including producing their own shell in a purpose-built hatchery.

Six years on and they're reaping the rewards of that investment, harvesting pearls that started out life in the hatchery.

Mr Brown said he was "excited" about the harvest from the hatchery and two "gigantic" pearls had come from the group.

Mr Brown said it took years to develop the hatchery and the research program, so to see such positive results "inspires the whole team".

Industry turning a corner

Mr Brown said this year's harvest had been a noticeable turnaround for the farm.

"I'm so excited by this particular group [in the harvest]," Mr Brown said.

He said that, as well as the disease, the Australian pearling industry had suffered from reduced demand and lower wholesale prices sparked by the Global Financial Crisis that struck in 2007.

At the industry's peak, 16 independent pearl producers operated on the Kimberley coast, but the downturn in the mid-2000s saw that reduced to just three companies in WA.

While demand has been slowly recovering, local producers have struggled to compete with cheap, mass-produced Asian pearls.

Changing consumer preferences

The Kimberley pearling industry has started to recover. ( Supplied: Willie Creek Pearls )

Cygnet Bay Pearl Farm has responded by transforming its business model.

It has moved away from wholesale markets and instead tries to cater directly to consumers through tourism and retail.

"We're really changing our farming techniques now to meet our new business demands," Mr Brown said.

Our best stories in your inbox Subscribe to Rural RoundUp: Get our best stories from rural and regional Australia every Friday.

"Australia is very famous for its very big, consistent white pearls, but unlike the wholesale market consumers actually want something rare and different."

Mr Brown said pearl colour could be manipulated through the selection of donor tissue.

He said over the past two years, the company's technicians had been targeting unusual colours "like the golds and the yellows".

Cygnet Bay has also sought expansion opportunities and has partnered with New South Wales farm, Broken Bay Pearls.

Linking the businesses under the brand, Pearls of Australia, Mr Brown said he hoped to educate Australians about the true value of the Australian cultured pearl.

Willie Creek Pearl Farm is about 40 kilometres from Broome on the Dampier Peninsula. ( Supplied: Willie Creek Pearl Farm )

Pearl tourism

Willie Creek Pearls is another commercial pearling operation in the Kimberley that sees a bright future.

In 2015, the company went from being a retailer and tourism operator to a fully-fledged commercial pearling operation after acquiring a sea lease near Broome.

This year, the business celebrated its largest harvest on record.

Operations manager Paul Birch said it was a milestone for the company.

"We will be harvesting upwards of 10,000 oysters this year," Mr Birch said.

Willie Creek Pearl Farm is harvesting between 400-600 pearl oysters each day this season. ( ABC Rural: Courtney Fowler )

R&D offers new hope

More than 12 months ago, a brand-new $500,000 hatchery was opened at the pearl farm, a collaboration between Willie Creek and Autore Pearls.

Autore has moved its hatchery operation from remote Beagle Bay to the new facility at Willie Creek, where vital genetics research is being undertaken.

"The reality is some two years after that event, after a lot of handling and a lot of risk, we will have a supply of hatchery shell that is ready for us to seed," Mr Birch said.

"That will supplement the wild stocks that we're going to fish."

Willie Creek Pearls managing director Robert Banfield inspecting a pearl at the company's sea lease near Broome. ( Supplied: Willie Creek Pearls )

The past couple of harvests have delivered promising specimens for Willie Creek.

"One in particular that stands out is a 19.2mm pearl that came out of a first-seeded oyster," Mr Birch said.

"If it's got a good colour with no complexion marks, you're looking at anywhere between $20,000."

He said that last year, one sold for $75,000.

Cygnet Bay holds the record for what is thought to be the world's most valuable cultured pearl.

It is believed the Brown family has been offered up to a $1 million for the 22.24mm gem, but it has never been sold and remains on display at the family's showroom in Broome.