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The failure of Sealord’s Argentinean subsidiary Yuken has hit every iwi in the country in the hip pocket.
Sealord, which is a 50-50 joint venture between pan-iwi fishing company Aotearoa Fisheries and Japan’s Nippon Suisan Kaisha, sold Yuken last year after years of losses.
According to the 2013 annual report of the Maori fisheries settlement trust, Te Ohu Kaimoana, Sealord is reporting a $44.4 million loss and won’t pay a dividend.
After absorbing its half share of the result, Aotearoa ended the year with a $6 million loss, despite its managed divisions reporting a $16.9 million profit on revenue of $152.4 million.
That compares with a $12.4 million profit in 2012 on revenue of $154.1 million, Te Ohu Kaimoana chair Matiu Rei says while his board was disappointed with the Yuken outcome, it supported Sealord’s decision in light of the political, economic and regulatory environment in Argentina.
He says it also means no dividend from Aotearoa to its iwi shareholders.
“Te Ohu Kaimoana understands that this announcement comes as a blow to iwi who rely on these dividends. We can’t expect every year to be an outstanding one financially. There are peaks and troughs, especially in the fishing industry,” Mr Rei says.
In the previous three years, Aotearoa Fisheries returned $23.4 million in cash to its shareholders by way of dividend.
It also made a one-time taxable bonus share issue in November 2012, which allowed shareholders to get a tax refund or an offset against other taxable activities.
As well as its problems in South America, other parts of Sealord’s fishing business also failed to meet expectations in 2013.
It lost money in a North American joint venture, and catches fell short in New Zealand fishing operations such as pelagic, squid and southern blue whiting fisheries.
The high New Zealand dollar also affected selling prices of its key fish products.
Within Aotearoa Fisheries, Moana Pacific Fisheries and OPC Fish and Lobster were amalgamated to create Aotearoa Fisheries Inshore.
The aim is to maximise the allocation and use of quota and allow for a more efficient, productive and sustainable harvesting and marketing operation.
In February, Aotearoa Fisheries took over the Pacific oyster nursery and spat growing operations at Glenduan, north of Nelson, from the Cawthron Institute.
Its Prepared Foods subsidiary opened a new state-of-the-art facility, replacing its Palmerston North factory that was more than 50 years old.
Copyright © 2014, UMA Broadcasting Ltd
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