King salmon was introduced to New Zealand from northern California as a game fish in the late 19th century

Warmer summer negativily affect NZ King Salmon's harvest, earnings

The 2019 summer season has again been challenging for overall fish performance, due to sustained warm water temperatures which continued into April, reports New Zealand King Salmon.

The company announced that full  year  mortality cost for  the  year ended 30 June 2019 (FY19) will now be materially higher than in FY18, and that it expects to harves around 7,900 tonnes, down 9 percent from the previous estimate.

Biological perfomance previously presented to investors

As a consequence directors advise that expected FY19 operating EBITDA is likely to be at the lower end of the previously noted Guidance of between NZD 25.0 million and NZD 28.5 million.

Havest volumes previously presented to investors

The challenging summer means that FY20 harvest volumes are likely to be in line with FY19, rather than around 8,700 tonnes previously advised.

John  Ryder,  Chairman  of  New  Zealand  King  Salmon, said that although fish performance has not met theirexpectations during 2019, "the company continues to meaningfully grow value within the available supply of salmon."

Managing director and chief executive Grant Rosewarne highlighted that the company adopted specific measueres to mitigate the effects of climate change, such as:

• Choosing to move to site single year class of fish across all farms as soon as possible (global best practice is regional ‘all in all out’ single year class), with fallowing between year classes. 
• Intensified work with Government and the local community, to obtain approval for the critical Ministry  for Primary Industry proposal  covering relocation  of  low  flow sites  to  higher  flow areas.
• Actioning the current strategy towards longer term open ocean farming.

“We  note  that  the  Coalition  Government  is committed  to  addressing  and  mitigating  the  effects  of  climate  change  and  strengthening  biosecurity.  New Zealand’s green rated salmon industry is  an  ideal  candidate to demonstrate that commitment given  the  solutions  are  relatively  simple,  such  as  shifting  existing  salmon  space  to  cooler  deeper waters  and  enabling  open  ocean  farming, together  with  best  practice  biosecurity  protocols," said Rosewarne.

"We believe  local  councils,  such  as  the  Marlborough  District  Council,  would  respond  positively to  such leadership," he added.
 

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