Thank you @CaptainBarnacles for bringing that to my attention. Didn't see that.
New Zealand King Salmon grow in similar conditions to the Atlantic Salmon in Tasmania, but they aren't the same fish. I looked up the sea temperature conditions at the moment, and they are relatively similar. In New Zealand they are tracking at ~19c which is around +2.5c warmer than average for this time of year. Been a three-year "heat wave" in the oceans. Similarly in the D'Entrecasteaux Channel where Tassal grows most of their larger fish, the temperatures are approaching 19c too - this is only around 1-1.5c warmer than normal. That is, sea temperatures near to Hobart are typically 1c warmer than the growing areas for New Zealand King Salmon in Marlborough Sound.
But the main difference is that King Salmon like the waters cooler than the much more versatile Atlantic Salmon. King Salmon typically grow in 12-17c, whereas Atlantic Salmon prefer 13-16c, but can grow from as low as 4c to as high as 22.5c. That's the benefit of all that research and selective breeding that went into the Atlantic Salmon, the most advanced aquaculture species globally in terms of R&D. You can check out the CSIRO's work on Atlantic Salmon's selective breeding program which was designed, in part, to improve their resilience to climate change: https://www.csiro.au/en/research/animals/aquaculture/salmon
No doubt the current conditions aren't perfect for Tassal, but the impacts won't be the same for Tassal vs NZK. At least, not this year. Maybe if climate change continues to impact on sea temperatures (that's my base case), they may need to look for alternative growing locations or further improve the species. For now, no cause for concern from the NZK update as a Tassal shareholder.
TGR Price at posting:
$3.50 Sentiment: Buy Disclosure: Held
