Fish The one that got away
I&J, as recently reported, saw a 41% decline in operating profits year on year for the six months to December, while rival Sea Harvest saw a decline of only 3% for the year to December. Each has a roughly equal quota of the hake catch in local waters, and each are well-managed businesses – I&J as subsidiary of AVI, and Sea Harvest owned by Brimstone. So what’s up with the difference in profits? In addition to its own catch, I&J import big quantities of fish block, unprocessed white fish which it processes into things like fishfingers and fish cakes, then exports again, to countries like Italy, Spain, Germany and France – which is where the recent strength of the rand hit it hard. Sea Harvest, which is not like I&J primarily an exporter, managed to weather the worst of the rand strength, maintaining both volume and pricing on most of its markets.
Comment: So there you have it. But go easy on the oceans anyway, boys.