New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<h2>Sanford (SAN) and New Zealand King Salmon (NZK)</h2>
Government long-term aquaculture strategy — Targeting NZ$3bn annual revenue
The Government has released a long-term strategic goal for the Aquaculture industry, putting in place a target to grow it to a NZ$3bn industry by 2035 (2019 ~NZ$650m). The strategy is centred on volume opportunities, primarily in open ocean marine farming. The Government also remains committed to hitting the previously communicated target of NZ$1bn by 2025, which is underpinned by current consented water space and provides an indication of when it expects to see tangible production outcomes from open ocean farming.
The strategy illustrates Government support of a growing industry with a clear indication to increase public funding available to facilitate innovation and growth in the sector. We have a positive view of the long-term prospects for the aquaculture industry with OUTPERFORM ratings on both listed companies with direct exposure, Sanford (SAN) and New Zealand King Salmon (NZK).
Media release&nbsp;<a href="https://www.beehive.govt.nz/release/government-delivers-plan-world-leading-aquaculture-industry" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.beehive.govt.nz/release/government-delivers-plan-world-leading-aquaculture-industry&amp;source=gmail&amp;ust=1568861515352000&amp;usg=AFQjCNEIAhy97CJvYN4FjGu-OM_47k9g7w" rel="noopener">HERE</a>.
Key&nbsp;points
<ul>
<li>Open ocean targets: We understand that included within the strategy is a target for 11 open ocean finfish farming sites, each with an annual production of ~10,000MT. The New Zealand industry currently produces ~13,000MT of King salmon annually. A single open ocean farm is likely to have a material benefit for the industry.</li>
<li>Water space availability:&nbsp;We understand the Government strategy involves targeted marine spatial planning with dedicated water space to be identified and then offered up under a tender process.</li>
</ul>
&nbsp; &nbsp; &nbsp; o&nbsp;&nbsp;We expect there will be a certain allocation of marine space to iwi, similar to what is done under the current quota management system in wild catch (e.g. 20% of new space).
Annual revenue per 10 farmed hectares (NZ$’000)
<table class="table table-striped"><colgroup> </colgroup>
<tbody>
<tr>
<td>Protein</td>
<td>Annual revenue</td>
</tr>
<tr>
<td>Salmon</td>
<td>140,000</td>
</tr>
<tr>
<td>Mussels</td>
<td>850</td>
</tr>
<tr>
<td>Oysters</td>
<td>800</td>
</tr>
<tr>
<td>Kiwifruit</td>
<td>800</td>
</tr>
<tr>
<td>Dairy</td>
<td>77</td>
</tr>
<tr>
<td>Sheep &amp; beef</td>
<td>9</td>
</tr>
</tbody>
</table>
Source: Zespri, Beef+Lamb, DairyNZ, AQNZ
Guy Hooper
Analyst, Equities&nbsp;
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T:
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+64 4 495 5255
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0800 367 227
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F:
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+64 4 495 8193
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P:
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PO Box: 5266, Wellington 6145
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<a href="http://www.forsythbarr.co.nz/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www.forsythbarr.co.nz&amp;source=gmail&amp;ust=1568861515353000&amp;usg=AFQjCNFtPpMoWy_BbEYoKZqP9P5zDo1D6g" rel="noopener">www.forsythbarr.co.nz</a>
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<td style="width: 156px;">Twitter:</td>
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<a href="http://twitter.com/forsythbarr" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://twitter.com/forsythbarr&amp;source=gmail&amp;ust=1568861515353000&amp;usg=AFQjCNGeLPRE1_OPgI1D-WY6EXYhA8sXkw" rel="noopener">@forsythbarr</a>
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Sanford (SAN) and New Zealand King Salmon (NZK)
Government long-term aquaculture strategy — Targeting NZ$3bn annual revenue
The Government has released a long-term strategic goal for the Aquaculture industry, putting in place a target to grow it to a NZ$3bn industry by 2035 (2019 ~NZ$650m). The strategy is centred on volume opportunities, primarily in open ocean marine farming. The Government also remains committed to hitting the previously communicated target of NZ$1bn by 2025, which is underpinned by current consented water space and provides an indication of when it expects to see tangible production outcomes from open ocean farming.
The strategy illustrates Government support of a growing industry with a clear indication to increase public funding available to facilitate innovation and growth in the sector. We have a positive view of the long-term prospects for the aquaculture industry with OUTPERFORM ratings on both listed companies with direct exposure, Sanford (SAN) and New Zealand King Salmon (NZK).
Media release&nbsp;HERE.
Key&nbsp;points

Open ocean targets: We understand that included within the strategy is a target for 11 open ocean finfish farming sites, each with an annual production of ~10,000MT. The New Zealand industry currently produces ~13,000MT of King salmon annually. A single open ocean farm is likely to have a material benefit for the industry.
Water space availability:&nbsp;We understand the Government strategy involves targeted marine spatial planning with dedicated water space to be identified and then offered up under a tender process.

&nbsp; &nbsp; &nbsp; o&nbsp;&nbsp;We expect there will be a certain allocation of marine space to iwi, similar to what is done under the current quota management system in wild catch (e.g. 20% of new space).
Annual revenue per 10 farmed hectares (NZ$’000)
 


Protein
Annual revenue


Salmon
140,000


Mussels
850


Oysters
800


Kiwifruit
800


Dairy
77


Sheep &amp; beef
9



Source: Zespri, Beef+Lamb, DairyNZ, AQNZ
Guy Hooper
Analyst, Equities&nbsp;




T:


+64 4 495 5255




TF:


0800 367 227




F:


+64 4 495 8193




P:


PO Box: 5266, Wellington 6145








W:


www.forsythbarr.co.nz



Twitter:

@forsythbarr





Sanford (SAN) And New Zealand King Salmon (NZK): Government Long-Term Aquaculture Strategy — Targeting NZ$3bn Annual Revenue

New Zealand

Sanford Limited owns and manages deepwater and inshore fisheries throughout New Zealand waters.  The Company also operates cool-storage, ship-building, engineering and aquaculture businesses.  The Company exports seafood throughout the world.  The Company's seafood products include orange roughy, squid, hoki, tuna, mussels and salmon.

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Sanford Limited (SAN NZ)

Sanford (SAN) And New Zealand King Salmon (NZK): Government Long-Term Aquaculture Strategy — Targeting NZ$3bn Annual Revenue

Sanford (SAN) and New Zealand King Salmon (NZK) Government long-term aquaculture strategy — Targeting NZ$3bn annual revenue The Government has...

Forsyth Barr

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