February 2, 2007

 

New Zealand's seafood company Sanford Q1 sales up 15 percent

 

 

New Zealand seafood farming company Sanford revealed that sales in the first quarter is 15 percent up on-year.

 

However, the news was dampened by the NZ$4 million (US$2.7 million) loss it made betting that the New Zealand dollar would fall.

 

Chief executive Eric Barratt said the exchange rate made trading extremely challenging. The company had held substantial US dollar assets predicting a fall in the New Zealand dollar. So far, it has not happened. 

 

However, the losses could still be recovered if the kiwi dollar dropped in the next six months.

 

Chairman Bruce Cole told shareholders at the company's 125th annual meeting that catches had been very good and markets for almost all species strong.

 

Cole blamed the country's Reserve Bank's policies, which has been fighting inflation "as almost the only economic evil".

 

Cole also warned of the detrimental effect of a currency kept artificially high.

 

The company this year plans to spend $NZ 3 million (US$2 million) upgrading two of its plants, with the full programme expected to run to NZ$ 8 million (US$ 5.4  million).

 

However, Cole expressed hope that the Weihai plant in China, in which Sanford has a 40 percent stake, had opened up a whole new range of markets and customers. Still, it would take time for volume throughput and profitability to be realised.

 

In addition, he revealed that Sanford is considering offers made for most of its Canadian business.