August 29, 2007

New Zealand seafood company mulls entry into China

Ngai Tahu Seafoods, New Zealand Seafoods company, is considering tapping China's seafood market after converting a multi-million loss last year into respectable profits this year.

The company earned a US$9.2 million annual profit, after incurring a US$22.8 million loss the previous year.

The figure was also the best performance seen in the last five years thanks to an increase in lobster prices, better margins and a reduction in frozen stock, chief executive Geoff Hipkins said.

Sales reached US$76 million this year. Last year's loss was largely caused by a US$20.7 million balance sheet write-down, the company said.

Abalone and live crayfish sales brought in US$7.3 million and US$24.4 million respectively, which were both up on the previous year.

The company has also focused on building up live lobster exports to China in the past year, Hipkins said.

The company was considering building a plant in China, where it could sell its live crayfish directly to buyers, cutting out the wholesaler who takes a 20 per cent to 25 per cent cut.

Ngai Tahu would make a decision about the move into China within the next year.