Home' Huon Aquaculture : 2015 Annual Report Contents Huon Aquaculture Group Limited
Strategy and outlook
for the full year
to 30 June 2016
Market Over view
Pricing in both the domestic wholesale and
expor t markets has been volatile in recent
months however indicators, such as the
NASDAQ Salmon Index, vaccine use and
smolt intakes globally, suggest that supply
is tightening and pricing is likely to improve
as a result.
Working toward the business strategy
in the year ahead:
Growing the Market:
The Company will focus on returning the
equilibrium to the domestic market through
displacement of impor ts, and through
targeted expor t oppor tunities which will see
the Company’s expor ts at around 15% of
However, in the near term, the ongoing
presence of volume impor ts is likely to
keep pricing from recovering to the levels
experienced in the first half of FY2015. As
a result, the Company will continue to focus
on its channel optimisation plan to ensure
maximum possible revenue is achieved.
The channel optimisation plan directly
feeds into product development.
Consumer-led product development is
expected to be a feature for the year and
will demonstrate the capacity and capability
of the Company’s new Product Innovation
Centre and Smoke House, which was
completed and commissioned in FY2015.
In addition, the acquisition of new
processing facilities closer to markets on
the eastern seaboard is anticipated to
fur ther optimise freshness to market and
deliver logistical efficiencies in FY2016.
To suppor t this, the Company will continue
to optimise its channel mix through
targeted, profitable product placement in
all sectors, including growth of its online
segment and targeted exports into
profitable Asian markets. Given the global
market outlook, Huon considers targeted
exports of large fish will deliver good returns.
Growing Production and
The strong per formance in underlying
biological assets positions the Company
to capitalise on market growth in FY2016.
The Controlled Growth Strategy will
continue to be implemented in FY2016.
Projects expected to reach completion are;
• Forest Home Hatchery completed
• New “Fortress Pen” roll-out – 10 0%
coverage across all farm sites
• New mooring systems completed
• Two new Feed Barges
• Farming at reconfigured Storm Bay
To maximise the use and effectiveness of
the assets, Huon will move progressively
towards a zonal farming model in the first
half of FY2016. This is expected to
standardise efficiency gains and improve
overall farm productivity.
The new structure coupled with new feed
technology, such as pellet recognition
software, is also expected to deliver
improvements in feed conversion ratios
(FCR) and fish quality.
Production increases will be suppor ted by
the new Forest Home Hatcher y which will
increase available supply of high quality
smolt for the 2016 year class (2017 har vest
fish). This will also allow all other Huon
hatcheries to increase smolt size, which
typically translates into larger har vest fish.
In addition, the new Springfield broodstock
facility, also completed this year, will allow
larger, earlier smolt to be produced.
Growing Safely and Sustainably
Managing Huon safely and sustainably
includes mitigation of key risks to the business.
The safety of our people is paramount and
through the Company’s “Safety First ”
program the Company will focus on
continuous safety improvements and
is specifically targeting a reduction
of 35% in LTIFR.
Fur ther reductions are anticipated in the
Company’s number one injur y categor y of
“slips, trips, and falls” following the completed
roll-out of the New For tress Pens.
Impor tantly, the Company will under take
a safety improvement project, to improve
the safe use of capstans. Capstan injuries,
although less frequent, are usually more
severe in their impact.
The Company will also work towards
cer tification to Australian Standard 4801
Fish health and performance
Treating Amoebic Gill Disease (AGD)
through fresh water bathing is a significant
cost of production. AGD can impede
growth rates and compromise fish health.
In FY2016, the Company will be
under taking fish health trials at the new
Experimental Aquaculture Facility (EAF) that
was commissioned in FY2015. In addition,
the Company is also actively par ticipating
in an international collaboration
on AGD research.
The Company will also assist in the
development of a 5-year research plan
for the Aquatic Animal Health and
The industry selective breeding program
also plays a significant role in long-term
fish health and per formance. The Company
is already experiencing the benefits of the
program which are expected to continue
In addition, the use of the Company’s
well-boat is reducing stress associated with
handling the fish and increasing the rate
of bathing is fur ther improving fish health
Chief Executive Officer’s Report
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