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 Originally Posted by Marilyn Munroe
From the SAN half year report;
"The projects we have underway in our diverse fishing division, both inshore and in the deep sea fleet are going well, but they are substantial undertakings requiring significant investment of capital, time and expertise and therefore require our patience as we tackle the move from commodity to added value, species by species."
Buenos días Iceman, would you care to comment?
Boop boop de do
Marilyn
I don't really know what they are referring to as they haven't made any announcements that I've noticed. But I heard a little rumour that they have signed a deal to build replacement scampi vessels in Holland. I've seen some of the requirements they put out for tendering for them and am underwhelmed. Their last couple of vessel purchases have been disasters as has been discussed on this thread and I fear they are once again making a mistake when selecting new equipment. Cost savings seem to have a higher priority than anything else, which is not the wisest thing to do when selecting new machinery to last you for decades. I thought they had learnt from the last 2 stuff ups.
No idea what else they are doing but as I have stated on this thread, their toothfish vessels need replacing soon and I suspect the lack of performance in this fishery for SAN this year may be partly due to other operators having much better vessels to compete in the Ross Sea's olympic fishery.
I find the result on the whole underwhelming/disappointing.
Last edited by iceman; 29-05-2020 at 08:23 AM.
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I watched a program called the "Price of Fish" yesterday. It discussed the quota management system and pointed out the people of NZ don't get any return from it, although it is supposedly protecting the resource for all NZ. It also pointed out the level of dumping going on and generally was critical of the quota management system. I am actually sympathetic to many of the issues raised but am torn as the quota system is what makes my investment in Sanford so secure.
It also reinforced how bat **** crazy management were selling quota of any species under the current system. There might be a better system but it will probably impact poorly on my safe Sanford investment.
I guess Covid-19 has shown even conservative investments such as AIA, SKC and the property companies face risks. Rio Tinto has unsettled shareholders in the power companies, although they will still make money.
No point to be made just wondered if anyone else saw it. Didn't watch to the end as they seemed to harp on the same themes.
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Originally Posted by Aaron
I watched a program called the "Price of Fish" yesterday. It discussed the quota management system and pointed out the people of NZ don't get any return from it, although it is supposedly protecting the resource for all NZ. It also pointed out the level of dumping going on and generally was critical of the quota management system. I am actually sympathetic to many of the issues raised but am torn as the quota system is what makes my investment in Sanford so secure.
It also reinforced how bat **** crazy management were selling quota of any species under the current system. There might be a better system but it will probably impact poorly on my safe Sanford investment.
I guess Covid-19 has shown even conservative investments such as AIA, SKC and the property companies face risks. Rio Tinto has unsettled shareholders in the power companies, although they will still make money.
No point to be made just wondered if anyone else saw it. Didn't watch to the end as they seemed to harp on the same themes.
It was sent to me Aaron but due to my travels and bad connections at the moment I could not watch it all properly.
As you know, I am involved in the fishing industry but dlsclose I have no financial interest in the NZ industry at present. NZ and Iceland have a very similar QMS (Quota Management Systems) that are quite different from most other countries. These 2 countries introduced their systems for the exact same reason. Trying to stop overfishing and making fishing sustainable for fish stocks and other affected species (birds, dolphins, sharks etc etc).
Both of these countries have been vastly more successful with those goals than any other countries I know and I've worked under about 10-15 different systems.
The biggest argument I hear in both countries against the systems is that some people have been very successful at it and made good money. My view is that many people were making big money before these systems were introduced. There is nothing wrong with that.
I am not saying at all that the system is perfect, but I have not seen anywhere around the World, systems that manage access to this resource better than NZ and Iceland.
If people want to demand change, they need to say what is the better alternative.
Last edited by iceman; 27-07-2020 at 10:13 PM.
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One of my criticisms of quota management is how little the benefit of privileged access to quota given to Maori has trickled down to the ordinary Maori joker struggling to keep his family feed.
Boop boop de do
Marilyn
Last edited by Marilyn Munroe; 27-07-2020 at 01:18 PM.
Reason: missing word
Diamonds are a girls best friend.
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SAN closing its Tauranga fish factory with the loss of 65 jobs. One wonders how much this site is worth for them to sell, but probably not a lot with all the derelict and unsafe buildings.
This completes they're withdrawal from Tauranga after selling the pelagic operation a couple of years ago.
I've also heard that they have sold their Australian hoki and orange roughy quotas to Talley's which, if true, is a decision I do not understand.
Happy to remain on the sidelines with this one and am starting to question where the management is heading with it all. They've said all the right things but I see very little action to back up the big goals.
https://www.nzx.com/announcements/357447
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Originally Posted by iceman
SAN closing its Tauranga fish factory with the loss of 65 jobs. One wonders how much this site is worth for them to sell, but probably not a lot with all the derelict and unsafe buildings.
This completes they're withdrawal from Tauranga after selling the pelagic operation a couple of years ago.
I've also heard that they have sold their Australian hoki and orange roughy quotas to Talley's which, if true, is a decision I do not understand.
Happy to remain on the sidelines with this one and am starting to question where the management is heading with it all. They've said all the right things but I see very little action to back up the big goals.
https://www.nzx.com/announcements/357447
Hopefully it is not true regarding selling more quota. The only reason I could think that you might sell it is if you are getting a backhander from the guy your selling it to.
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Whatever it is - markets not happy with Sanford these days. Not quite sure yet, whether this is Sanford shares on special or whether this is just another iteration of a dropping knife on no news.
However - I recon it won't take long for us to find out ... today is the day!
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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This is a very bad announcement. COVID has put the brakes very hard on their policy of aiming miost of their production to higher value customers such as restaurants around the World. The high value has become very difficult to sell with large price drops. Commodity products into supermarkets is where the market is today.
https://www.nzx.com/announcements/359084
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Originally Posted by iceman
This is a very bad announcement. COVID has put the brakes very hard on their policy of aiming miost of their production to higher value customers such as restaurants around the World. The high value has become very difficult to sell with large price drops. Commodity products into supermarkets is where the market is today.
https://www.nzx.com/announcements/359084
No doubt - there will be accumulation opportunities ahead if the market should overreact  ;
How many years will Corona related restrictions impact on the revenue (and income) stream? Right.
Interesting though that our top wine producers (who basically sell to the same clientele) didn't notice their revenues to drop due to reduced restaurant consumption ...
Discl: holding a (small) position and ready to accumulate at the right price;
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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CEO leaving. A big surprise. Very short notice and clear he has been pushed. . As I’ve said on this thread for awhile now, SAN's management has made some very bad decisions in the last couple of years and not really making any traction towards the ambitious goals Volker set. Maybe time for a big clean out in management to change the direction !
Last edited by iceman; 10-09-2020 at 12:34 PM.
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