This AGM was very comprehensive with MD & CEO Mark Ryan in...

This AGM was very comprehensive with MD & CEO Mark Ryan in particular giving outstanding answers to questions submitted by various shareholders. It was obvious to me that they treat shareholders' questions seriously.

The detail in the speeches, again particularly from the MD, was also excellent.

Some takeouts:

The company noted that with mainland China alleging some salmon imports from Norway were alleged to have coronavirus transmission, an 80000 tonne annual market (overall imports not Tassal's) went to zero overnight. However it is now recovering, but TGR does not believe it prudent to be overreliant on mainland China for its surplus that is directed into exports.

TGR is exploring markets like Vietnam and others in Asia. Today it appointed someone to look after the USA market and has also done the same for Europe, with both of the latter viewed as presenting some opportunities.

TGR has also seen a decline in Victorian foodservice sales, down about 35 per cent but retail sales in Vic are up about 32 per cent (I didn't copy down the exact percentages).

TGR is happy to keep retail salmon sales at about 60 per cent of total salmon sales. MD went into some more detail that I didn't catch.

There are no plans for another capital raising but the Chairman acknowledged that the way REH did its (entitlement issue plus SPP, so retail shareholders were not diluted by Reece Holdings) was the 'Rolls Royce' model. The MD Mr Ryan then said that in future TGR would take the feedback into account.

The Federal Government's investment allowance won't result in an accounting writedown/loss. There was some other detail stated by the MD but I missed it.

In prawn farming, there have been 'good' and bad' surprises such as crocodiles getting into prawn farms and 'the snakes are pretty fast' (jocular) but the farming has been easy. Sales market has been a bit more challenging then TGR expected as export and foodservice markets have been displaced. Growth is up thus far in 2020-21 compared to 2019-20 and the MD is very pleased with how with the team built the ponds and stocked the farms.