N.Z. Salmon beats target with maiden Va-profit

Press, 6 July 1985, Page 21

N.Z. Salmon beats target with maiden Va-profit

The New Zealand Salmon Company, Ltd, yesterday announced a maiden net profit of $349,374 in the six months to March 31, which the directors said was ahead of budget. In spite of the company trying to put the announcement of whirling disease in rainbow trout at the Ministry of Agriculture and Fisheries’ Glenariffe hatchery in the Rakaia catchment on May 29 into perspective, New Zealand Salmon had borne the brunt of some unfortunate and unjustifiable publicity, they said. A quarantine notice placed on the Rakaia catchment was revoked on June 4, five days after it was imposed, allowing the company to proceed with its normal hatchery practices. The only effect on marketing was the temporary ban placed on exports of all

salmon from New Zealand to the United States by the Ministry of Agriculture and Fisheries. This ban was revoked by the ministry on June 18. The expanded hatchery at Lake Coleridge had performed extremely well in the six months. The 1985 run of salmon to the hatchery brought a return of about 4000 adult fish and more than eight million ova were being processed through the hatchery’s facilities this season. Production of fish feed of a high quality continued to increase at Christchurch. The sea pen business at Stewart Island was now near the end of its first establishment phase. By late 1985 the company plans to have 120 sea pens in the water and more than 400,000 fish on site. Fish cropped in early 1985

were distributed to domestic and export markets and response was excellent. The company was now having a big impact on Stewart Island’s economy. The construction of one of the world’s largest commercial salmon hatcheries was nearing completion at Tentburn. Sixty races had been completed, the sea ladder construction was well advanced and would be completed on schedule later this year. Fish were at present being released from Tentburn and the coming season’s stocks were being laid down on site, the directors said. The company acquired the mussel farming processing and exporting business known as Marlborough Perna. This business consisting of farms and a processing factory, had already established an international

reputation for quality mussel production and had specialised in developing new processing technology to ensure that this reputation was enhanced. It had made a significant contribution to the profit in the first six months. Marlborough Perna played a major role in the New Zealand green-lipped mussel industry and the company considered current and projected development to be compatible with the salmon activities. The directors said that they regarded the result as satisfactory, and that expenditure continue to be within budget. Sales were $1,203,000. There was no tax paid but minorities took $16,000. No comparatives were given as the company is making its first interim report, and no dividend information was given.