Salmon Farm Expansion Plans

2 May 2012

Salmon Farm Expansion Plans

Nelson leaders predict major growth for region

Nelson businesses, the Seafood processing union and the city’s mayor are firmly behind NZ King Salmon’s expansion plans saying they will result in increased downstream employment at a time when young people are leaving in droves.

Business owners also say the company is a responsible producer of high quality products wanted by the world and it is “not going to bastardise their own environment”.

City Mayor Aldo Miccio says Nelson backs winners and aquaculture is a new and exciting industry the region needs and wants.

“We back a lot of established industries in Nelson but aquaculture is relatively new and it has huge potential in terms of employment and growth for the region. We need companies such as NZ King Salmon to be successful for the overall economic wellbeing of our citizens.

“Strong cities have a broad base of commercial and cultural support and in my experience NZ King Salmon has certainly demonstrated an ethical and community-focused approach to business. Nelson supports its plans to grow the business,” Mr Miccio says.

Neville Donaldson, the assistant national secretary of the Service & Food Workers Union, says his organisation has a good working relationship with NZ King Salmon.

“The company is a sound employer and has proven experience around Salmon farming and processing in its plants and farms. The region needs additional employment and the union welcomes the company’s plans for expanding Employment opportunities in the Region,” Mr Donaldson says.

Titan Slicer CEO Sean Marr says it’s natural the expansion is good for his company but it also means increased outsourcing and more revenue for the Nelson area.

“Nelson is facing a tough time at the moment – fishing and pipfruit for example have taken a hit of late,” Mr Marr says. “The greatest export out of Nelson is our young people. This is an estimated loss in value of $200 million. If we don’t create jobs to retain them then future of industry in this region is bleak.

“NZ King Salmon is a very responsible operator – they’re not going to bastardise their own environment. Not only is it their own backyard, to do so would also degrade the quality of their product.

“I travel to the Northern Hemisphere a lot and NZ King Salmon product is held in very high esteem – the problem is that people can’t get enough of it. We are behind the planned expansion 100 per cent and will do whatever we can to support it.”

Ansco Engineering managing director Dave Hockey says “it is a pain in the butt (that NZ King Salmon) has to jump through so many hoops” for planning permission.

“People only have to look at what NZ King Salmon has done historically to see how sustainable its operations are and the benefits it brings to the region – they’ve got a strong legacy of good management,” Mr Hockey says.

Paul Sturrock from Sturrock & Greenwood says the salmon company’s expansion would provide the opportunity to train more apprentices, employ more staff and increase trade-based skills.

“I firmly believe NZ King Salmon should have the support of our country in their attempt to increase their ability to be a global food supplier. The rest of the world may not buy manufactured goods from us but they will buy good food products and we need to be aware of the potential strength NZ King Salmon has in the global market.

“The things we will learn from working with them will mean we can grow our experience and provide a better service to our other manufacturing clients,” Mr Sturrock says.

Timaru-based Independent Forklift general manager Merv Dore says his company’s relationship with NZ King Salmon has helped it employ people and maintain a presence in the Nelson-Marlborough area.

“We think this expansion is a great thing – especially in this day and age in the current economic climate,” Mr Dore says. “Being able to employ more people and bring in more revenue to New Zealand is not only good news for our company and NZ King Salmon, but also for the Nelson region and the country generally.”

NZ King Salmon CEO Grant Rosewarne says by the mid-2020s more than 1,600 additional jobs will be sustained in the Nelson Marlborough region if his company’s plans come to fruition.

A report submitted with the company’s application to the Environmental Protection Authority also estimates the proposed expansion will generate an additional $119m of value added commercial activity in the regional economy. The figures assume salmon production levels anticipated by the expansion are achieved.

Nationally, the company is expected to sustain $178 million[1] of total value added annually in the New Zealand economy by 2016 and $1941 million every year from 2021. The expanded salmon production and processing, and associated flow on activities, will sustain an additional 1,510 jobs in total by 2016 and more than 1,600 by 2021.

By comparison, in 2010 the company’s activities contributed some $71 million in total value added in the New Zealand economy, sustaining 1,050 jobs in total including current staff of more than 450.

The report[2] was commissioned by the company and prepared in 2011 by Auckland consultancy Market Economics Ltd (M.E.) and takes into account the New Zealand King Salmon farming and processing operations themselves as well as their flow-on effects through the economy.

About New Zealand King Salmon

New Zealand King Salmon (NZKS) sustainably farms King salmon from five sea farms in the cool, deep waters of the South Island’s Marlborough Sounds. NZKS invests heavily in research and development and is recognised worldwide for its best in class King salmon farming practises. It is firmly committed to the sustainability and viability of a renewable resource with its success centred on maintaining the purity of the waters in which the salmon are farmed. King salmon has the highest natural content of healthy long-chain Omega-3 oils important for life and good health and which can help to maintain a healthy heart.

NZ King Salmon:

· Is NZ’s largest fin fish aquaculture producer employing more than 455 skilled workers in New Zealand and a further 10 in Australia, the US and Japan.

· Currently produces 8,500 metric tonnes of King salmon annually accounting for 70 per cent of New Zealand’s salmon production.

· Is the world’s biggest farmer and supplier of the King salmon variety with 55 per cent of the global market and earns around NZ$60 million a year in foreign exchange.

· Has clear market advantages including great tasting salmon from a sustainable, disease-free, chemical-free, clean growing environment, fresh-to-market distribution, vertical integration and supply chain product traceability.

NZKS brands Regal and Southern Ocean are available nationwide from supermarkets (NZ only), fish suppliers and good delicatessens. For recipes and serving suggestions visit www.regalsalmon.co.nz. For more information about NZ King Salmon visit www.kingsalmonco.nz.

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