Data loading...

Clean Seas To Stop Tuna Propagation Temporarily Australia, March 6, 13

When profits are high enough, Clean Seas’ tuna propagation program will be re-started at its 400ha site at Arno Bay on South Australia’s Eyre Peninsula.

In recent times, the health of Clean Seas Tuna has been as bad as that of the sick and dying yellowtail kingfish it was farming.

However the ailing aquaculture business told investors on Wednesday that it was on track to post a maiden profit in 2015.

Clean Seas recently posted a AUS$ 34 million-plus first half net loss, including AUS$ 30 million in write-downs of its cancelled tuna breeding program.

For now the stripped down business will concentrate on producing kingfish, which is branded as Hiramasa Kingfish, for sales to Japan to be used as a delicacy in sashimi.

Its fish stocks were ravaged by deaths and illnesses last year that threaten the company’s survival.

It says the now resolved issues - which caused intestine infections in the fish - were caused by deficient feed from external suppliers, who it is now fighting for compensation.

“We are going to basically concentrate our efforts on producing kingfish and making the company profitable because until now it has been really a development company,” Clean Seas chief executive Craig Foster.

Mr. Foster said Clean Seas expected to be profitable when kingfish production was increased to 1,100 tons a year by the 2015 financial year from a current greatly reduced 500 tons.

It has cut its workforce to 40 from 120 due to its problems.

A planned expansion into Europe or the US would need a partner, which it has failed to find so far.

The company’s shares were flat at 1.6 cents on Wednesday, having traded at nearly AUS$1.80 five years ago.