Important Customer Letter - Tassal Salmon Price IncreaseBack

Tuesday, 3 September 2013
Tassal customers,
In April I wrote to the market advising of an upcoming price increase on Tassal products and the reasons that had led to this, including: Global increases in the cost of fish feed impacting on the salmon cost base for domestic and global suppliers; additionally, record high water temperatures over summer adversely affecting growing conditions.
The record high water temperatures over February and March this year have led to less biomass availability then was initially forecast. Salmon consumption in Australia has been growing +20% annually for the past 5 years and lower available biomass combined with +35% increases in prices of imported Atlantic salmon has led to demand significantly outstripping supply for Tassal salmon.
Although we have strong plans to deliver biomass growth to meet demand in the future, at this
current time we cannot meet the total demand for Tassal products. To support demand as best as possible we have begun to import salmon products from Europe, but this is not enough and as a consequence, price increases across fresh HOG, Fillets and all Smoked products have been implemented.
I would like to take this opportunity to thank you for your understanding and continued support as we move through this extended period of contracted supply. Should you have any further enquiries please do not hesitate to contact your Wholesaler who can put you in contact with a Tassal Business Manager.
Kind Regards,
Michael Burgess
Senior Manager Wholesale and Foodservice