NZ King Salmon profit leaps on strong sales
New Zealand King Salmon (NZKS) chief executive Grant Rosewarne says the launch of super-sized Tyee salmon has been a success story although production remains small.
So far, the company has only been able to harvest about 10 a month. They need more space and nutrition than other salmon and they can grow to double the size, to about 13 kilograms.
‘‘They’re awesome eating, a bit like bluefin tuna. It’s a real New Zealand success story that we’ve been able to take a premium product and make a super premium product,’’ he said.
Rosewarne spoke about the Tyee after posting a higher than ever profit from the company’s fish farm operations of $16 million, on turnover of $160m.
NZKS has offered the Tyee to exclusive events around the world where chefs have used it for sashimi dishes – such as a recent function in Seattle hosting the Japanese prime minister.
Tyee salmon are native to the Campbell River of British Columbia and have a longer life-cycle of about four years compared with the usual two years.
Meanwhile, NZKS was still awaiting government approval to relocate four fish farms to cooler open-sea areas. Higher water temperatures last summer killed 20 per cent of the farmed fish compared with 8 per cent in 2017.
Rosewarne was expecting a final decision in the new year.
He said the proposed farm relocation would help mitigate warmer temperatures. ‘‘Our aquaculture team is building warm-weather resistance into our breeding programme.’’
Even so, the listed company achieved strong export sales, especially through sales of its O¯ ra King brand.
A breakdown of sales shows $41m of salmon sold to New Zealand retail outlets and $37m to New Zealand restaurants. About $48.1m was sold in North America, $11m in Australia, $8m in Japan, $2.8m in Europe, and $9.9m to other markets.
Total sales of $160m were ahead 18 per cent on the previous year, and the after-tax profit of $16m was up 14 per cent.
The profit forecast for next year was $25m to $28m.
Chairman John Ryder paid tribute to the company’s 500 staff.
NZKS has four main brands: O¯ ra King, Regal, Southern Ocean, and Omega Plus.