Could it be rough seas ahead for new Huon Acquaculture owners JBS?(Supplied: Huon Aquaculture)

Brazilian meat giant JBS flags further aquaculture investment following Huon purchase

The following is an excerpt from an article published by ABC:

Executives from Brazilian meat processing giant JBS have been in Tasmania surveying its new seafood company Huon Aquaculture ahead of its takeover next Wednesday.

Already, the company's Australian chief, Brent Eastwood has foreshadowed further investment in aquaculture in the country.

"This will be our first foray into aquaculture," he said.

In Tasmania, JBS joins Tassal — Australia's biggest atlantic salmon producer and the only publicly listed salmon company — and Petuna, which is owned by the New Zealand-based business Sealord Group.

Last month Australia's Foreign Investment Review Board green-lit a takeover plan by JBS. 

The takeover bid, announced in August, valued the company founded by Tasmanians Peter and Frances Bender at about $550 million, including debt. 

No onshore salmon farming for Huon

Mr Eastwood has hosed down talk of moving salmon farming onshore, saying the company has not yet seen evidence "to back that up," despite the farming technique being investigated as an alternative in other parts of the world.

"We'll watch that carefully," he said.

"We haven't seen anything yet that means we shouldn't be continuing what we're doing. It's a very sustainable business now, a clean business, even though there's a lot of noise from certain areas."

JBS is among the world's biggest meat processors, with operations that span the globe processing beef, chicken and pork. However, it was a novice in the seafood space.

"We are very new to the salmon industry. We are very impressed with the Huon set-up, the team, the strategy. We've done a lot of due diligence over the past few months and everything we've seen has further endorsed that it's a great business and a great company, " Mr Eastwood said. "We think there are areas in their business that we can add good expertise and help."

JBS chief executive Brent Eastwood has spoken with ABC radio Hobart about the company's plans for Huon Acquaculture.(ABC Rural: Fiona Breen)

Huon Aquaculture will make up about 2 per cent of JBS' global operations.

Business as usual for Huon

Speaking on ABC radio Hobart, Mr Eastwood reassured staff and suppliers that it was business as usual for Huon.

"We've spoken to many. We've given our strategy, our view and listened to what they have to say," he said.

"They've had concerns, but they've been going through a sales process for quite some time which is very uncomfortable and challenging so they're looking forward to a stable future with JBS."

Huon Aquaculture runs 11 farm leases around Tasmania.(ABC News: Paul Strk)

"We buy companies, but we don't sell."

Mr Eastwood and John Berry — JBS' head of corporate and regulatory affairs — also caught up with Huon's stakeholders, including the Bob Brown Foundation, The Tasmanian Alliance for Marine Protection, and author and industry critic Richard Flanagan.

"We wanted to be open and transparent with everything we do. We requested those meetings. We wanted to listen to their concerns," Mr Eastwood said. (continues...)

Author/Source: Fiona Breen and Tony Briscoe / ABC.NET | Read the full article by clicking the link here

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