Sanford shielded from mystery oyster deaths

Sanford shielded from mystery oyster deaths

by Jason Krupp

Dec. 3 (BusinessDesk) - Sanford Ltd., the fisheries group which recently acquired the Greenshell mussel and Pacific oyster business from Pacifica Seafoods for $85 million, said the unexplained deaths sweeping through upper North Island oyster beds will have minimal impact on the company.

The New Zealand Oyster Industry Association for Aquaculture New Zealand and MAF Biosecurity yesterday launched an investigation into why up to 50% of juvenile Pacific Oysters on marine farms are dying in North Island harbours.

"Pacifica's oysters are in the South Island, and the South Island is not affected," Sanford managing director Eric Barratt told BusinessDesk. "Our activities in the North Island make up a very small percentage of our operation."

According to the company's financial report for the year to Sept. 30, Sanford's oyster holdings were valued at $395,000, and accounted for just 3% of its biological assets, valued at $13.3 million before the Pacifica deal.

Barratt said the effects of the deaths will only be felt next year, when the oysters are ready for harvest, which puts the company on the line to take a earnings hit of just $200,000.

As yet the cause of the deaths is uncertain, with a number of probable causes including environment conditions and disease.

"We don't know we have a disease, we do know we have mortality issue," said Tom Hollings, executive officer of the New Zealand Oyster Industry Association. "MAF is looking into it and we expect definitive answers by the middle of next week."

Hollings said that while New Zealand's oyster exports are only worth $30 million a year, the impact of the deaths will be acutely felt by the 200 or so oyster farmers in the region, who employ up to 500 people a year at the peak of the season.

He stressed the deaths posed no food safety problems, and at this stage no import restrictions had been placed on exports, although movements of oysters within New Zealand have been limited. Sanford shares were unchanged at $4.85, the highest level since January this year.

(BusinessDesk) 12:48:38

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