Why to look at these 2 NZX fishing stocks in 2021?

Highlights

• The fishing industry is a part of the primary sector of NZ.
• Sanford expects to perform better in the second half of FY22.
• NZK has projected harvest volumes of over 4K tonnes in H2 2022.

The fishing and aquaculture industry in NZ is primarily involved with fish catching and other seafood. The majority of the fishing industry's activities occur in oceans, rivers, and other natural bodies of water. Aquaculture is a modest but rising sector of the economy that involves breeding and producing fish and seafood.

The fishing and aquaculture industry suffered the impact of COVID-19 as its seafood exports were severly hit by the pandemic due to its high dependence on trade.

Allowing foreign mariners to travel to NZ is vital for the existence of the        NZ fishing industry, as per fishing firms.

Here’s a look at how these 2 NZX fishing stocks are doing.

Image source: © 2021 Kalkine Media, Data source- EODHD/Others

Sanford limited (NZX:SAN) 

Inshore and deepwater fisheries managing company Sanford was hit by COVID-19 due to its adverse effects on foodservice demand, labour, prices and supply chain majorly freight. However, the Group’s different segments have begun to recover at a different speed.

Sanford has seen an increased demand for wild caught seafood and salmon as well as progress in key international markets. However, the Group’s mussel business has stayed weak, and its pricing continues to be a challenge.

DO WATCH: How are NZX fishing stocks faring?

Sanford also announced that the commercial catch limit had been increased in the Snapper 8 fishery, effective 1 October 2021. The Group expects to see a seasonal uplift in its performance in the second half, though the extent of the lift is not stated.

ALSO READ: Would rise in SNA8 catch limit benefit Sanford (NZX:SAN) business?

Further, Sanford notified on 5 November that its COO, Clement Chia provided his resignation on 5 November and will stay in the role till January.

Shares of Sanford gained 0.82% in trading on Monday to close at $4.94.

New Zealand King Salmon Investments Limited (NZX:NZK)

The largest aquaculture producer of the premium King salmon in the world, New Zealand King Salmon, witnessed a challenging 1H22. The Group started its Prescient Aquaculture model in September, which has been built on the experience of its team and years of farming King salmon.

Premium brands in NZK are excelling at building client connections and supporting margin expansion while also diversifying across groups and geographies to build resilience.

The Group forecasts harvest quantities of above 4K tonnes in the second half of 2022, at premium pricing as usual. In the months ahead, NZK is still yet to revise its market outlook.

The Group appointed Carol Chen as the Director of NZK on 3 November, while Mr. Lai Po Sing resigned from his role as director on the same day.

Shares of New Zealand King Salmon fell 1.38% in trading on Monday to close at $1.43.

Bottom Line

The fishing and aquaculture inustry is likely to expand in the succeeding 5 years.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)