The five million oyster spat, or larvae which have permanently attached to a surface, arrived from Tasmania last week.

The spat, which measure two millimetres in diameter, will remain at a hatchery at Cromarty Bay for three months before it is distributed to farms throughout the port.

It will take another nine months before the oysters are ready for sale.

About 90 per cent of the area's oysters were lost in recent months due to a recurrence of the deadly QX disease.

The disease is not harmful to humans, but the parasite infects Sydney Rock oysters, causing them to lose condition and die during winter months.

President of the NSW Farmers, Port Stephens branch, Matt Burgoyne said the spat would go some way to helping farmers recover from the impact of QX disease.

"The losses we incurred will be felt for a few years yet," he said

"QX has killed absolutely everything; We've gone from 40 to 30 farms. This is going to help the businesses that are left to stay viable."

Mr Burgoyne said the spat cost about a cent per millimetre.

Some farmers had used their flood recovery grants to buy the spat.

Most will continue to work in hybrid employment until the oysters are ready to harvest.

"They are pooling all their resources to get them onto their farms or to get them into the nursery," Mr Burgoyne said.

"Lots of farmers are working a hybrid kind of arrangement to get through."

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The state's oyster industry is worth $58 million annually.

Cameron of Tasmania, part of Yumbah Aquaculture, has supplied the spat to growers across NSW.

The company provided Coffin Bay oyster growers with spat during POMS outbreaks in 2018 in partnership with Yumbah.

Manager of Cameron of Tasmania Ellen Duke said the company was working to build a long-term partnership with NSW oyster growers.

"Having faced similar challenges in 2016 in Tasmania due to a POMS outbreak, we wanted to act immediately to help the NSW industry get back on its feet. The program will kickstart a long-term solution through increased access to hatchery produced spat and options for species diversification," she said.

Ms Duke said the company was investigating options of producing Sydney Rock Oyster spat in the future

"Together, we will look at long term business options in the area to apply our multi-species expertise and providing a long-term solution to supply issues and risk diversification," she said.

The NSW Department of Primary Industries is seeking funding support for required research to help fill important information gaps for the longer-term management of OX disease.

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