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.
(BusinessDesk)