a few facts on tgr - feedback interested , page-10

Hi

$5 bucks a kilo or there abouts is the farm gate price cost of production. Components of this are cost of smolt, feed costs, direct farm labour costs and direct farm overheads.

I am unsure whether TASSAL expense farm equipment depreciation, insurances etc against the farms production cost or carry the same as a corporate expense. A one point in time these were corporate expenses as far as I know.

To my knowledge the cost of harvest, wet processing (i.e. gill and gutting for Hoggs) is carried by "wet processing" department which may now be a internal sub of the "value adding department". Then you have packaging and freight (i.e. distribution).

So to determine FIS (free in store) price you need to add farm gate cost + wet processing/VA + distribution + a corporate component. IMO you will find this price (i.e. total corporate cost per Kg of Salmon produced) will be closer to $10 bucks a Kg than $5.

Just guessing but ;)

IMO