Monday, 3 November 2008

SEAFOOD INDUSTRY RIDING THE CONFUSED SEA OF INTERNATIONAL TRADING

Stuff has a good round up here today on how the seafood industry is doing in light of the global financial crisis. And it includes some word of wisdom from one of the most affable gentleman in the seafood industry.

Specialist tuna exporter Solander Fisheries was finding the same issues with its two key markets, Japan and the United States.

Solander director Charles Hufflett said their Japanese customers seemed to be going back to basics and the high-end tuna market was feeling it.

"We are definitely seeing a softening; our agents in Tokyo said they [customers] are keeping their purses in their pockets."

Mr Hufflet agreed it was good news the currency had come down and fuel prices were at reasonable levels.

"The fuel in our long lining business was up at 45 per cent of our operating costs, which is just hopeless. We were making a loss."

He said volatility in the exchange rate was a complicating factor. "Last Friday the dollar ranged 8 per cent within the day. That's doubling our profit or wiping it out altogether. "

The optimal situation for fishing companies was with the New Zealand dollar at about 55 on the trade-weighted index, about 10 per cent below where it was now, Mr Hufflett said. The industry had been squeezed of profits for a long time, so he hoped the favourable conditions would persist.

"It's been too long, you can see that here in Nelson; business was slowing down, it was almost becoming a retirement village again. Things have been very tight."

2 comments:

Barnsley Bill said...

you are now linked........ Sorry it has taken so long... I am very lazy.

bustedblonde said...

welcome to the very dark side