Huon reports financial loss
HUON Aquaculture, the Tasmanian salmon farming company at the centre of a takeover battle, has suffered a loss of AUS $128m (£67m) for the financial year ended 30 June.
The company said it had been a turbulent year, with challenges including a fish pen fire, rising transport costs and the disappearance of a large consignment of fish from a processing plant in New South Wales.
At the time this issue went to press, Huon was subject to an offer of AUS $426m (£226m) from the Brazilian meat processing giant JBS.The offer has board approval, but Australian mining magnate Andrew Forrest has been trying to block the takeover on fish welfare and environmental grounds. JBS, however, dismissed his criticisms in a full-page Tasmanian newspaper advert.
Although Huon’s revenue rose by 24% during the period (July 2020 to June 2021), its financial performance was badly affected by the impact of Covid-19 which led to a reduction in global demand for salmon.
This, in turn, brought a reduction in salmon prices which continued for most of the financial year.
Huon said it had started the new financial year with significant biomass in the water, including fish for harvest carried over from the previous period. Growing conditions at the start of the 2020-21 financial year were exceptional, but a long and very warm summer during the second half resulted in lower average weights.
The company said it expected conditions to improve in 2022.
Meanwhile, Huon had some positive news in late August, picking up a clutch of top awards for the quality of its fish.The company won the Champions Seafood Trophy at the 2021 Royal Tasmanian Fine Food Awards, with five products gaining gold and a further four winning silver.