This is a company I like the look of a great deal and was considering buying shares in it several months ago but in the end decided against it and won’t be looking at it seriously unless a few things change.


Pro’s:

- Massive economic moat/s; currently only around 5 countries around the world produce salmon in any real scale, salmon are picky, NZ is blessed to have suitable conditions for salmon growing


- Practically unlimited demand for their product. As incones rise around the world more protein will be demanded. Most especially such healthy proetins such as salmon. Omega 3 is great for health etc etc.. Great tasting, their regal smoked salmon is by far the best tasting salmon I’ve had in NZ.


- Management, John Ryder being chair is a massive vote of confidence for me as I respect him and his judgement a lot. Don’t know as much about the CEO Grant even though I’ve seen his face in many Stuff articles.

- Low carbon vs land farming which will be important with NZ signed and committed to 2050climate agreement.

- 30 year consents on the farms means more reliability, easier to predict, less risk with change in govt etc...

Con’s:

- Untested, only 2 years as a public company. Not as much info to go off. I don’t need 10 years like ol’ WB enjoys but a few more wouldn’t hurt. Get some wins under their belt, prove their strategy etc..

- Constrained supply. unless new consents are granted their hands are tied and they’ll be extremely restricted to extremely modest growth. I believe every 3 years their allowed to increase their feed dispersed and correspondingly the fish harvest per farm though modestly.

SP currently higher than I see the company as being worth.


Very keen to find out the results re farm rellocation. It is taking a while!