Coles and Woolies won't care actually.. if they can get...

Coles and Woolies won't care actually.. if they can get inflation through salmon prices while maintaining their margins (which they will), then their take increases too. All protein is going up in price, so the relative price of salmon will largely be maintained I reckon.

The best thing that Tassal has done is to reduce their exposure to long term contracted prices. Through the subtle shifts in their channel/sales distribution mix, they have decreased the percentage for retail via supermarkets, and increased the percentage via wholesale and branded products. Wholesale is much more closely linked to spot prices, so that should be doing well at the moment. Still, my base case is that margins will be maintained in FY22 despite the high spot price, but I reckon they should be expanding in FY23+ as it takes a bit of time for their pricing to work through. Let's see...