NZ King Salmon upgrades output on improved biology

The company now estimates that the EBIT is projected to be between NZ $19 million (£8.26m) and NZ $27 million(£11.8m). This, says the company represents a significant increase from earlier estimates, based on improved biological results.

 

Chief Executive Officer Carl Carrington said the update reflects greater confidence in recent fish performance and its anticipated impact on full year results.

 

He added that mortality levels over the summer were lower than initially forecast while feed-out rates remained strong.

 

These factors have provided the producer with a higher volume of fish for sale along with an overall improvement in size and quality. Consequently, the company has raised its expected harvest volume for the year to a range between 5,800 and 6,100 tonnes.

 

The New Zealand King Salmon company was a pioneer in marine salmon farming in New Zealand by utilising King salmon stock introduced from California over 100 years ago.

 

The company has been growing and selling King salmon to consumers in Aotearoa and overseas for over 35 years. It has a well-established domestic market share along with a successful history in offshore markets.

 

New Zealand King Salmon said recently that improved fish performance had also increased operational efficiency, by lowering unit costs across farming and processing segments.

 

The higher biomass has also enabled it to supply more fish into markets that offer higher returns.

 

Like many salmon farmers around the world, however, New Zealand King Salmon has cautioned about possible risks from the Middle East conflict which is continuing to have a major impact on air freight costs and supply chains.