Good post Fyffee.In terms of costs; the reason why they have...

Good post Fyffee.

In terms of costs; the reason why they have been elevated is less to do with the unit of input costs but rather the costs required to maintain the biomass/sale.

Going fwd growth in biomass will be matched by demand. During lockdowns/covid this wasnt the case hence inventory overhang. As you can imagine there is an inflection pt for mature fish, so you stop feeding them and harvest. However, if there is no demand you have to keep feeding them to keep them alive without the equivalent biomass growth rate. Or harvest them and put them on ice for an extended period of time.

Whilst an inflationary env isnt great for input costs the real impact will come from reducing the stk overhang and matching biomass growth to demand. The other cost initiatives should also take effect in the medium term.