A solid lift in sales volumes and better margins has helped seafood company Sanford deliver a "good" third quarter result, amid the lingering effects of Covid-19 and skill shortages.
Photo: Supplied / Sanford
Overall sale volumes rose 14.4 percent on the same quarter a year ago, which was driven by a 17 percent increase in wildcatch numbers.
There was an 8 percent increase in mussel volumes, while salmon volumes were down 17 percent.
Sanford chief executive Peter Reidie said the company continues on the pathway to recovery from the initial shock of the pandemic and saw the result as a "good third quarter".
However, he said the company was still dealing with Covid-19 and a tight labour market.
"This is affecting our ability to meet the demand for our products.
"Our greenshell mussels division is the most affected by this, meaning our performance in this division remains behind our expectations."
Mussel prices were 7 percent higher than a year ago at $7.38 per kilogram but were down on the levels recorded in 2020.
The wildcatch division performed strongly and continued to be the "engine room" of the business.
"This will power our plans for growth and capital investment to take the business forward, as discussed in our strategy refresh launched in June."
Catch numbers in this division were affected by tight crew numbers on its vessels, as the company managed the effects of high Covid-19 cases nationwide, he said.
Sanford's mussel business was the "least well performing division" as labour shortages meant the company had to switch from the higher yielding half shell products into more meat and whole mussel products.
Salmon prices continued to rise but the company was seeing less fish in the water, due to higher deaths over the summer caused by warmer waters.
"We have plans in place to manage risks in this area for the coming summer, including increasing pen spacing and providing oxygen enhancement to more of our farm when needed."
Looking ahead, Reidie said the company still had plenty of work to do manage ongoing challenges but it was encouraging to see that global demand remained robust.