I suspected the market would be down significantly this morning...

I suspected the market would be down significantly this morning after last night's performance in the US but wasn't expecting the second drop at around 11am. It was one of those days when I was looking forward to 4pm and the market closing. Stocks can't drop any further after the close, fortunately! Still, the Tassal performance was a real susprise. I suspect it has something to do with Goldman Sachs' updated research -- which was released after the close last night, and covered many of the topics raised on this forum; namely improved salmon prices, emptying of freezers and increased volume into China. It predicts a stronghalf-year result next month. It was almost as if the author(s) had been reading these forum posts over the past few months It re-iterates the previous $4.20 target price and is available through Commsec.



I had a read through the 2019 Sustainability Report and copied the following from page 9:



The Sustainability Reports really are well put together and comprehensive. It must take an awfully long time to compile a document like this. It is essential reading for anyone questioning Tassal's environmental impact. They cover all bases from an ESG perspective and, at the very least, show a company which is talking the talk when it comes to sustainability and minimising its environmental footprint. Tassal has certainly given the matter a lot of thought and it seems to be a company priority. I am copying the following table from the 2021 Sustainability Report. It compares salmon and prawns with the meat from land-based animals. Salmon and prawn farming may not be perfect, but in terms of choosing meat with the least damage to the environment, we offer a strong alternative to other choices consumers could make. The only better alternative is to avoid meat/fish completely.



In regards to seaweed I noticed the recent annual report featured seaweed rather than a fisherman (or woman), fish pens, salmon or a prawn. As for what this means for future acquisitions, I would say probably not a lot. I read the reports shared by Dabozza and they really show an industry (if you can call even it that) in its infancy. I am not sure we would be spending millions of dollars' capex on a pipe dream when we have prawns to develop over the next eight years. It's an interesting idea, and Tassal has been involved in research,but I don't know where it would fit in to the company and being a profitable part of our business.

As for mussels, I note that Spring Bay Seafoods (Spring Bay mussels) are sold through our De Costi in New South Wales. I found a 2016 The Mercury article written by Mark Ryan where Tassal and Spring Bay were operating a lease together:



https://www.themercury.com.au/news/opinion/talking-point-we-want-to-open-up-about-farms/news-story/f515bbfd9456c3a6807bbddcda547b08

Furthermore, we have collaborated with Spring Bay Seafood to do research into seaweed for future commercial use.
This from Institute for Marine & Antarctic Studies's Twitter feed in September 2020:



Perhaps a tentative move towards seaweed and/or mussels will come through a partnership with (non-listed) Spring Bay Seafood. Of course, I have no idea. I am just raising a few points and sharing some research I've done. Trying to distract myself from the greater overall market situation today! These things I've posted probably mean nothing but may be of interest to other Tassal shareholders here.