Sanford Earnings FC effected by FX changes

[Joshuatree]

Climate change impact hits Sanford's full year profit

[iceman]

In response to JT's link above, I think it is pathetic to use this wording to justify they're lacklustre result. I've been in the industry all my life and we have had many years with unusual, both warm and cold, climate. To blame this result on "climate change" is simply silly.
But I do note that we have sea surface temperatures right now in the southern Tasman Sea that are above average, despite having returned to more neutral levels since the La Nina period last year. At the moment I believe we are in a neutral state but leaning a little towards an El Nino situation this summer. That could be negative for the salmon, if we get a hot dry summer, for sure. Then again, El Nino sometimes produces strong southerlies and sometimes northerlies, so hard to predict that one.
I'm less convinced about effects on other species and SAN's overall operation, particularly now that they have exited all of their pelagic fisheries.

The state of the hoki fishery is of much greater concern but I'm pleased to see SAN and other deep sea quota holders voluntarily cutting their catches next year below that recommended and set by the Government and not allowing "carry over" from this year to next.
This has come about largely through pressure from skippers in the industry (not scientists), many of whom are concerned about the state of the hoki stock right now.

[Aaron]

Why the hell would you sell any quota, ever??????
https://www.nzx.com/announcements/327020

Lease it if you need to but don't sell.

I possibly don't understand how it works properly but once its gone it will be hard to get back. Quota is this businesses main asset. Boats you can buy as you need them quota is restricted. If the Tauranga business is not performing well lower how much you are leasing the quota for and maybe keep a boat to ensure the quota is fully utilised and not lost.

I really don't have a clue so would be interested in others comments.

[iceman]

Why the hell would you sell any quota, ever??????
https://www.nzx.com/announcements/327020

Lease it if you need to but don't sell.

I possibly don't understand how it works properly but once its gone it will be hard to get back. Quota is this businesses main asset. Boats you can buy as you need them quota is restricted. If the Tauranga business is not performing well lower how much you are leasing the quota for and maybe keep a boat to ensure the quota is fully utilised and not lost.

I really don't have a clue so would be interested in others comments.

A good point Aaron. This has been a poor performing division for SAN for years and the only way for them to exit it is to sell the quota assets. The boats alone are worthless. This follows on from SAN exiting the tuna business up in the Pacific a year or two ago so getting completely out of pelagic fishing

[Joshuatree]

Anecdotally ive heard there is a real old boy network in sanford all looking after their positions and not being very efficient at all. To be taken with a shake of salt as i cant verify this..

[iceman]

A little bird told me that this "voluntary" cut in catch is green washing. In reality they are not able to catch the full quota so putting a brave face on it.
Fishery has collapsed. Some say climate change. Others say over-fishing.

The cuts are real even though it is correct that not all the quota will be caught this year. Doesn't mean they won't be able to next year so the reduction is cautionary. Yes there is debate about the reasons, probably a mixture of overfishing in some areas and environmental changes. I wouldn't go as far as saying its due to climate change (to me that's a long term change, not short term like is more likely to be the case here) nor that the fishery has collapsed

[Balance]

https://www.nzherald.co.nz/business/...ectid=12204157

Sanford's salmon exports to China getting held up - no reasons given.

[iceman]

Fresh salmon too Balance so very linited shelf life. Serious stuff unless it is just related to common delays around Chinese New Year

[Balance]

Fresh salmon too Balance so very linited shelf life. Serious stuff unless it is just related to common delays around Chinese New Year

Definitely not 'common' delays.

All NZ exporters to China know without exception (let alone a seasoned exporter like Sanford) to ship stuff to China well ahead of CNY.

DHL guy told me that unless airfreighted perishables are 'shipped' one week before CNY at the latest, to forget about the perishables reaching the all important CNY market.

[ziptie]

The cuts are real even though it is correct that not all the quota will be caught this year. Doesn't mean they won't be able to next year so the reduction is cautionary. Yes there is debate about the reasons, probably a mixture of overfishing in some areas and environmental changes. I wouldn't go as far as saying its due to climate change (to me that's a long term change, not short term like is more likely to be the case here) nor that the fishery has collapsed

I think/hope that we will see more fishery closures in the coming years too many of the quota areas are not being anywhere close to being near their "TACC", most of the operators would probably paint it as thou they are leaving it in the water, where as the truth is more likely that gross overfishing has occurred and the fishery has imploded

would be nice to see the foreign vessels kicked out all together. sure it will cost jobs, but there wont be any jobs when the Fishery has been completely obliterated.