Seafood businesses feeling pinch

15th February 2007

Seafood businesses feeling pinch

"High interest rates and the exchange rate are eroding the profitability of the seafood sector," says Owen Symmans, chief executive of the New Zealand Seafood Industry Council.

"We are concerned that the very good returns being achieved overseas are not currently being translated back into New Zealand and are therefore not available to enable investment for growth," said Mr Symmans.

"It is putting considerable financial pressure on all sectors of the industry, from the small inshore operators to the large corporates. If the situation continues it will force further rationalisation of the industry and potentially further job losses.

"New Zealand companies exporting New Zealand seafood are achieving very good prices in the market at present. This is very positive and reflects the high-quality of New Zealand seafood products.

The New Zealand seafood industry has returned an average $1.2 billion a year in export revenue in recent years. It is New Zealand's fifth largest export earner.

For further information please see the New Zealand Seafood Industry Council's latest Annual Review available at www.seafood.co.nz If you would like more information please contact:

ENDS

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