Huon dismisses Andrew Forrest’s salmon crusade as ‘noise’

Huon chairman Neil Kearney said the company will not be distracted by Andrew ‘Twiggy’ Forrest’s ‘noise’.

Andrew Forrest has amassed almost 19 per cent of Huon and is agitating against a takeover from Brazil’s JBS. Picture: Justin Benson-Cooper

Huon Aquaculture has dismissed calls from its new major shareholder Andrew Forrest for better animal welfare and barbs at the company’s suitor, Brazilian meatpacker JBS, as “noise”.

In a letter published on the ASX, Huon chairman Neil Kearney stepped up efforts to convince shareholders to back JBS’s $425m takeover of the company, saying he won’t be distracted by Mr Forrest’s crusade.

Mr Kearney said JBS’s proposal was the “culmination of a rigorous strategic review” – a process Mr Forrest’s Tattarang declined to participate in.

Still, Mr Forrest – who was awarded a PhD in marine science in 2019 – has amassed a 18.5 per cent stake in Huon. He has called on JBS to improve its animal husbandry processes and accused it of not operating on a “no pain, no fear’ basis in its meat processing businesses around the world.

“Dr Forrest has questioned aspects of the animal husbandry practices of JBS and environmental standards of Huon and the salmon industry in Tasmania,” Mr Kearney said.

“It is important to note that the JBS proposal is the culmination of a rigorous strategic review process that was designed to identify the most compelling value proposition for all Huon shareholders. Tattarang was invited to participate further in the strategic review process, on the same customary terms as other process participants, and submit a final and binding offer but declined to do so.

“We are focused on providing our shareholders, particularly retail shareholders, with the opportunity to secure proper value for all their Huon shares. We will not be distracted by external noise that does not provide Huon shareholders with that opportunity.”

Huon’s website list’s Mr Kearney’s achievements as chief strategy officer at Goodman Fielder and before that chief executive of Warrnambool Cheese and Butter – a position he held from 2007- 2009, four years before it was taken over by Canada’s Saputo.

Mr Kearney’s departure followed a troubled joint cheese venture between WCB and National Foods (which became Lion and was later taken over by Bega). The deal weakened the company and led to an exodus of farmers to rival milk processors.

WCB could not afford the $50m for its 50 per cent stake in the venture and cut the price of milk it was paying to farmers.

In an interview with The Australian this month, Mr Forrest said Tattarang continued to support the work of Huon’s founder, the Benders, to improve the image of the world salmon industry.

He said the use of fish meal for its salmon farming was expensive and environmentally damaging, harming its reputation.

“When we invested in Huon, it wasn’t to see if we could make a turn or a cheap investment, it was to see if we could turn salmon farming away from its current very poor reputation,” he said.

“We expect Huon to continue on the journey the Benders started it on, even if they are no longer in control.

“Sustainability is the one factor that will guarantee jobs in agriculture, food on our plates and farming practices that protect the planet, not harm it.”