Seafood company Sanford says it is seeing the start of a post-pandemic recovery, with improved sales driven by strong demand for greenshell mussels and salmon.
Sanford said sales volumes for greenshell mussels were up 30 percent and salmon up 47 percent. Photo: Supplied / Sanford
Sales volumes were up 11 percent for the first quarter, compared to the same period in 2021, the company told the share market on Thursday morning.
Prices have also gone up 24 percent in its wildcatch division, offsetting lower sales in that particular division.
The company said strong customer demand for greenshell mussels saw pricing go up 12 percent compared to the prior corresponding period, and sales volumes were up 30 percent.
Salmon sales volumes were up 47 percent, pushed by strong demand in key markets, and the company said it managed to clear the remaining frozen stock.
Chief executive Peter Reidie said it was a good result and showed the situation was improving and meeting expectations.
"We continue to face supply-side challenges around access to labour and freight costs. Looking ahead, there are additional challenges posed by Omicron.
"These challenges will likely be operational, where the last two years have been defined by suppressed demand. Now demand is recovering in many of our markets, but we are preparing for further disruption in local supply chains and for labour issues in a tight labour market."
Reidie said Sanford was focusing on challenges it could control, which included having a fully vaccinated workforce, operating teams in bubbles and putting in plans to manage absenteeism due to Covid-19.
The company also acknowledged other challenges, such as rising ocean temperatures, which could impact aquaculture operations.
"We have seen warmer than usual waters in our Big Glory Bay salmon farm for January. This has had some impact on salmon mortalities, although these were not outside the previous three year's average for this month.
"We are managing this carefully with lower stocking densities and additional aeration in all our salmon pens. However, the period ahead from March to May is traditionally a critical one for oxygen levels and algae, so we will continue to monitor and manage carefully."
Sanford said it was looking at options for its crayfish quota, which it fished and managed through third parties, and could result in its sale.
The company said it planned to reach a decision before the April start of the quota year for crayfish.