Tasmanian-based Tassal says YTD exports have been “significantly lower”, but it has entered into a supply agreement for over 1,500 tonnes with a new retail client for supply in 2Q20.
In its annual presentation meeting, Tassal wrote that a change in strategy will see it focusing more on the Australian market to maximise sales.
The salmon farmer is increasingly moving more and more into the prawn industry – which it sees as paramount to its “growth and species diversification strategy”.
“Our strategy for 1H20 is to optimise the growth and biomass of salmon by leaving them in the water to grow in the key growing time of July to October,” it wrote.
“We are confident of achieving this optimal growth and biomass. As a result, export sales YTD have been significantly lower than for 1H19, reducing Tassal’s exposure to export prices (particularly in 1Q20). Further, export pricing during 1Q20 has been lower than 1Q19 in any event,” it added.
This means that it will be transitioning export reduction into the domestic market bolstered by the fact that it has entered into a supply agreement for over 1,500 tonnes with a new retail client for supply in 2Q20 retail returns are better than export returns). Furthermore, it will be freezing more salmon in 2Q20 for use in 2H20, “at better returns than export”.