TGR 0.26% $3.89 tassal group limited

Four Corners "Big Fish" This monday, page-85

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    FYI, Tassal lost fish supply in terms of fish growth slowing in their south east sites due to the warmer weather last year where the fish turns lethargic. The withdrawal of Coles contract was to allow fish that would have been harvested to grow for longer during the incoming winter. The withdrawal also allows Tassal to distribute more fish via De Costi's which is part of the integration plan. Not selling to Coles actually improves sales flexibility. You sell where the margin is highest, and Tassal is now able to tweak their sales mix even more easily. For instance, if export markets are favourable right now, then I'm sure both Tassal and Huon would be selling to international customers, and not wanting to be stuck in a contract with Coles.

    Also, Macquarie Harbour actually had higher survival rates than Tassal's other leases in the state.
 
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