March 28, 2019
Salmon gives Sealord rosy future
Sealord chief executive Steve Yung says a troubled Tasmanian salmon farming venture is the future of the company.
He told today's annual meeting of Te Ohu Kaimoana strong perfromance in deepwater fisheries, increased margins through getting higher prices for some species and a significant reduction in costs meant the company was able to report a 14.7 percent increase in operating profit on the previous year.
But Petunia, which Sealord owns a 50 percent stake in, lost $8 million because its farms in Macquarie Harbour were hit by a virus, and then 40 percent of its fish died because of higher water temperatures.
He says a new executive leadership team has pulled off what's expected to be a $15 million turnaround by the June financial year end.
It is also selecting stock which can be grown in warmer water, which should give the company an industry advantage.
Mr Yung says because of the cyclic nature of primary industries, it's important for its Māori and Japanese shareholders that Sealord does not have all its assets tied up in deepwater fisheries.
Aquaculture represents an area where the company can grow beyond the limits of wild-caught fish, and it is able to achieve a premium for its salmon.
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