Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ King Salmon: too soon to tell on new govt and farms

NZ King Salmon says too soon to tell if new govt will hit farm relocations

By Rebecca Howard

Nov. 7 (BusinessDesk) - New Zealand King Salmon Investments, the world's largest aquaculture producer of king salmon, doesn't expect to spend any more on the consultation process involving the possible relocation of six farms but says it's too early to tell whether a new government will affect the process

The Minister for Primary Industries began a consultation in January to relocate up to six of the company's salmon farms from their historic locations to higher water flow sites more suitable for fish and the environment. A public process was carried out in May. So far King Salmon has spent $1.2 million and managing director Grant Rosewarne told shareholders at today's annual meeting in Blenheim that "we do not anticipate further material spend to complete the project."

However, "at this early stage, it is not possible to say what effect, if any, the change of government has had on the MPI process," he said in speech notes published on the NZX. The new government signalled it will split the Ministry for Primary Industries, naming Damien O'Connor as Agriculture Minister, Stuart Nash as Fisheries Minister, and Shane Jones as Forestry Minister.

King Salmon's Rosewarne reiterated that if some or all of the farms are relocated, the first harvest from those farms would be unlikely to come before the 2020 financial year.

"The higher flow sites should permit an overall increase in the volume of salmon harvested in addition to improved environmental outcomes," and each site would require some $6 million – or a maximum total expenditure of $36 million if all proposed relocations are approved. "We are confident that increased volumes readily justify the associated investment," he said.

If none of the farms are relocated and the company can't renew one of the sea farm consents, Rosewarne said total production might be lowered by 700-750 tonnes, adding "we note that we have successfully renewed all consents in the past."

The shares rose 4.8 percent at $2.40 and are up 80 percent this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Statistics: Food Prices Increase 7.4 Percent Annually
Food prices were 7.4 percent higher in July 2022 compared with July 2021, Stats NZ said today... More>>

REINZ: Market Activity And Prices Continue To Ease, First Home Buyers Start To Return To The Market

New Zealand’s winter property market continues its recent trend, slowing from the pace of sales and price rises of last year — properties stay on the market longer and median prices dip... More>>

FMA: Cigna Admits Making False And Misleading Representations
Cigna Life Insurance New Zealand Limited has admitted to making false and/or misleading representations to customers in proceedings brought by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko... More>>

Retail NZ: Welcomes Return Of Cruise Ships

“Cruise visitors were big spenders in retail prior to COVID-19, and retailers in Auckland will be celebrating the arrival of P&O’s Pacific Explorer this morning... More>>

ASB: Full Year Results: Building Resilience Today And For Our Future

In its 175th year, ASB has reported a cash net profit after tax of $1,418 million for the 12 months to 30 June 2022, an increase of $122 million or 9% on the prior year... More>>

Commerce Commission: Draft Determination On News Publishers’ Association’s Collective Bargaining Application
The Commerce Commission (Commission) has reached a preliminary view that it should allow the News Publishers’ Association of New Zealand (NPA) to collectively negotiate with Meta and Google... More>>