Brazilian JBS’ hotly contested bid for Huon was an early foray into salmon and departure from its mainstay business,meat processing.
And just how hot is salmon right now? The latest offer puts a price tag on Tassal exceeding $1 billion. Ten years ago,when corporate sharks (including Cooke) were circling Tassal the offer was more in the order of $280 million.
And still,Tassal is playing hard to get.
The Western world’s growing obsession with eating healthier has collided with the tightening regulations around awarding new salmon fishing licences. And this is not just the case in Tasmania – there is a worldwide trend towards limiting new areas of supply thanks to concerns around the social impact of fish farming.
It is a structural characteristic of the market which will likely place some floor under salmon’s long-term price.
This has meant that it’s more appealing for the existing big international players dominated by the Norwegians and the Canadians to acquire additional volume rather than grow it organically.
And in line with Tassal’s recognition of its corporate appeal,the company is going to make Cooke fight on price to win this Tasmanian-based prize.