As I said in my article on Monday, the Australian aquaculture industry is on a roll, benefiting from global demand for protein and the twin drivers of a shift to healthy eating and consumers’ need-to-know that food comes from clean and sustainable sources. On all counts, the Australian industry – based mainly in Tasmania, which accounts for almost 60% of national production, and South Australia, which contributes 21% – ticks the right boxes, and its prospects for export success are excellent. Here are other stocks that have been caught in my research net.
Seafarms Group (SFG, 7.9 cents)
Market capitalisation: $158 million
Three-year total return: 0.1% a year
Historical FY19 dividend yield: no dividend
Historical FY19 price/earnings (P/E) ratio: no profit
Analysts’ consensus valuation: not available
At present – that is, until Tassal ramps up production – Seafarms Group is the largest producer of farmed prawns in Australia, producing 1,800 tonnes a year from three farms, a hatchery and a processing facility in North Queensland. It farms two separate prawn species, under the brand Crystal Bay: black tiger prawns and the banana prawn, supplying almost year-round.