Just to expand the 'cost of feed' discussion a little bit....cause it is a little interesting and funny
So 'raw materials' is the place where Tassal has been lowering costs and boosting profit margin....
My understanding is that feed costs have not really been declining, its just that with all the best practice infrastructure investment, the fish have been getting bigger...
That is bigger fish for similar feed!hehe
Tassal is supplied feed by Ridley and they are apparently trying to 'cut the envelop' of cheaper feed, probably with more vegetable rather than meat component....this is an ongoing slow evolution
To some extent, as I understand it, this is the holy grail of fish farming....
Environmentalists such as Suzuki criticise the industry cause something similar to 5 X fish feed (white bait fish normally) are required to get 1X Salmon...
If Salmon can be 'trained' to eat lower costs vegitable feed, then that will satisfy both shareholders and environmentalists (both to an extent!)
TGR Price at posting:
$1.37 Sentiment: None Disclosure: Held
