May 6, 2020

 

Huon Aquaculture eyes lower salmon harvest

 

 

In a recent market update, Huon Aquaculture Group Limited said it is expected to reduce its targeted harvest, which was initially projected to be at least 25,000 tonnes, by between 5% and 10%, reported SeafoodSource.

 

The Tasmania, Australia-based salmon company has modified its harvest programme of its 2019 year-class salmon as brought about by ongoing impacts of COVID-19, until the market begins to normalise.

 

"Due to the ongoing impact of COVID-19 disruptions in Australia and internationally, there is sufficient uncertainty regarding the trading outlook for the remainder of FY2020 that Huon is withdrawing its guidance in relation to the performance of operating and statutory earnings relative to FY2019," Huon said.

 

The company said it is optimistic that it will recover by FY2021, predicting an increase of about 20% to 25% above its baseline forecast of 30,000 tonnes for that year due to the carryover of fish from FY2020, operational improvements, and good growing conditions.

 

In the first part of 2020, Huon has had mixed results in terms of sales, with a strong retail market, but heavy impacts to foodservice channels due to the pandemic.

 

"While sales through retail channels have been strong, due to its high exposure to the foodservice channel, Huon has experienced a significant drop in sales in its wholesale market during April," Huon stated.

 

Travel restrictions affecting international air freight services have made it difficult to access export markets, it said. But despite the pandemic, the company has continued operations, following the government's declaration of food providers as essential businesses.

 

In February, Huon said that because of the successful completion of its investment programme, it can increase salmon supply in the growing domestic and international markets.

 

According to the Australian government, fisheries, and aquaculture production value is forecast to decline by 12% in 2019–20 to AUD2.81 billion (US$1.8 billion, EUR1.6 billion) as a result of reduced export demand from China following the outbreak of COVID-19.

 

"The outbreak is assumed to impact markets for the second half of the 2019–20 financial year, followed by a resumption of typical market conditions by the end of the financial year," according to the government's outlook.

 

Production value is expected to increase by 21% in 2020–21 to AUD3.4 billion (US$2.1 billion, EUR2 billion) when export markets normalise, it predicted.