Tasmania-based Australian salmon farming company Tassal is finding itself in an advantageous position given the historic high prices the industry is currently seeing.
It said favourable supply and demand fundamentals globally and attractive dynamics in the domestic market will drive stronger margins for the year.
Inflationary pressures that drove operational costs higher have been offset by the high salmon prices, it said, a situation helped by its clients’ acceptance of higher prices.
“Domestic retailers have accepted cost increases to allow margins to be maintained in this market.”
Now that it no longer needs incremental funding to scale up its biomass, the company said it can now focus its growth initiatives toward sales mix, cost optimization, product innovation and brand building, among others.
It produced 23,992 tonnes of salmon (HOG) in the first half of fiscal year 2022 and it remains on target to producing around 40,000 tonnes for the whole year.
The company has ventured into shrimp farming to diversify its portfolio. The shrimp operation is now “well established” and has seen a “significant” growth in harvest volumes, it said.
