July 29, 2024

 

JBS to invest US$73.6 million in Huon Aquaculture expansion in Tasmania, Australia

JBS, the Brazil-headquartered meat processor, is set to channel AUD 110 million (US$73.6 million) into its Huon Aquaculture salmon-farming business in Australia, Just Food reported.

 

The investment will be directed towards Huon's land-based Whale Point farm in Tasmania. JBS announced that the funds will be used to build a salmon hatchery capable of rearing seven million fish. Construction is expected to begin next year, with a target completion date sometime in 2027.

 

Huon was acquired by JBS in 2021, marking the meat giant's entry into the seafood market. The company, headquartered in Hobart, Tasmania, is the second-largest salmon farming business in Australia.

 

JBS stated that the Whale Point project will allow Huon to farm salmon for longer periods in tanks, giving the fish more time to mature before being released into sea-based pens. This site, the company's first hatchery, was initially opened in 2019.

 

Henrique Batista, the CEO of Huon, mentioned that 150 jobs will be created during the construction phase. The business currently employs 1,000 staff in Australia.

 

"Salmon will spend most of its production cycle on land thanks to the strengthening of our installed capacity," Batista said. "The investment also increases the water reuse rate at the unit, which now reaches 99%."

 

The project has been under consideration since May, when Huon announced that eight permanent jobs would be created in addition to the construction phase positions.

 

Batista added that waste from the Whale Point site is processed and treated to be used as fertiliser by local cherry farmers and in pet food.

 

When JBS completed the acquisition in 2021, after a drawn-out process involving Australia's Foreign Investment Review Board, local courts, and Huon's shareholders, the company was operating 13 production sites and three product processing facilities in Australia.

 

During the acquisition process, JBS noted that Huon had invested more than A$350 million over a five-year period in infrastructure and sustainable practices in the salmon production cycle, positioning the company for sustainable growth.

 

In the 2023 fiscal year, JBS generated US$73 billion in revenue, an increase of 0.4% from the previous year. However, adjusted EBITDA fell 49% to US$3.5 billion, with the group posting a US$199 million loss compared to a US$3 billion profit the year before.

 

For the Australia division, which also includes beef and pork processing, revenue dropped 1.8% to US$6.2 billion, while adjusted EBITDA increased 2.4% to US$454.7 million. A net figure for this division was not provided.

 

-      Just Food