‘Sickened’: Tasmanians react to sale of Huon Aquaculture to multinational JBS
Award-winning author Richard Flanagan has warned that the prospective sale of Huon Aquaculture to Brazilian based JBS will be a bad day for Tasmania. HIS SAY + LATEST >>
Tasmania
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Award-winning author Richard Flanagan has warned that the prospective sale of Huon Aquaculture to Brazilian based JBS will be a bad day for Tasmania.
Mr Flanagan, who this year released a book critical of the salmon industry, said not only workers at Huon should be “fearful” about their jobs under JBS but that all Tasmanians should be concerned for their democracy.
“JBS is a meat industry giant with a global reputation for tax evasion, money laundering, price fixing, animal cruelty, and the rorting of public money,” the Man-Booker award winner said.
“Its record in Tasmania is the shutting of work places and the sacking of workers.
“In Brazil, JBS was found guilty of bribery on an industrial scale, buying off over 1800 politicians.
“As Joesley Batista, part of the Batista family which controls JBS and who served jail time in consequence said, corruption ‘was the rule of the game. And what’s most important, corruption was on the upper floor, with the authorities.’
“We’ve seen what this leads to before in Tasmania,” Mr Flanagan said.
“If its shocking history is any guide, the Brazilian butchers will seek to massively scale salmon production up while driving standards further down, sacking and exploiting workers, and worsening already appalling environmental destruction, cosying up to power to make it possible.
“Any Tasmanian with a home or shack on the coast should be extremely worried.
“Any Tasmanian who works with Huon Aquaculture should be fearful for their future.
“And all Tasmanians who love our island and value its democracy will need to stand up and fight for both if this sale goes through.”
JBS closed its Currie abattoir in 2012 despite a government rescue deal, with the loss of hundreds of jobs. It also closed its Quoiba plant in 2018 with more job losses.
The likely sale will be JBS’ first foray into aquaculture in Australia.
SALMON FARMER SALE STIRS UP FISH WARS
AS the state and federal governments welcome the sale of Huon Aquaculture to Brazil-based JBS, environmentalists say it will lead to “increased militancy from ordinary people” as they fight to protect the state’s waterways from salmon farming.
Premier Peter Gutwein said he phoned Huon’s founders Peter and Frances Bender on Saturday to thank them for their efforts for employing “a lot of people” and bringing investment into the state.
“In terms of JBS, I’ve had personal involvement with them over the last five years, as we worked to support the pork industry after we came to government, and I found JBS to be a company that has been fair and reasonable to deal with,” Mr Gutwein said.
“They have demonstrated that they have been a very reasonable corporate citizen in their time in Tasmania.”
Mr Gutwein said his government had strengthened regulation of the salmon industry and there would be no changes due to the potential sale.
Despite a government rescue deal, JBS closed its Currie abattoir in 2012 with the loss of hundreds of jobs and in 2018 it closed its Quoiba plant with more job losses.
Mr George said JBS’s track record overseas was “more shocking” including a $US280m ($A380m) fine for bribery in the United States.
Greens leader Cassy O’Connor said it was “a sad day for Tasmania’s marine environment”.
“The Benders have walked away from Huon Aquaculture with a reported $250m, after degrading our seas and rivers for decades, and their troubled company is now set to be in the hands of JBS, which has a highly questionable environmental record,” she said.
“In South America, for example, JBS is contributing to deforestation of the Amazon and displacement of indigenous people.”
Ms O’Connor said neither the government nor the EPA would be able to stand up to JBS to keep expansions in check.
Australian Workers Union assistant secretary Robert Flanagan said it would be business as usual for Huon’s 800 staff.
“This sale process could take months and if it is successful we will seek to hold discussions with JBS to see what their plans are,” he said. “The 2019-20 financial year was an absolute disaster for Huon but we worked through the challenges with them.”
Assistant Fisheries Minister Jonathon Duniam said the sale was a strong sign of confidence in Tasmania’s salmon industry, which employed more than 5000 people.
Neither Huon nor rival salmon producer Tassal would comment on the sale.
‘Sickened’: State reacts to Huon Aquaculture sale
As it is prepares to buy Huon Aquaculture, JBS has vowed to continue to develop the business founded by the Bender family 35 years ago.
However, Peter George from the Tasmanian Alliance for Marine Protection says his phone has been ringing hot since the likely $425m sale to the Brazilian company was revealed.
He said Tasmanians “need to feel sickened” by the prospective sale.
“No good can come of the sellout and communities around the state will stand together to oppose a giant multinational that has already shown its utter disregard for Tasmania and Tasmanians,” Mr George said.
“This is a company associated with industrial scale corruption, tax evasion and in Tasmania, the closure and sacking of Tasmanian workers.”
Huon has recommended shareholders accept an offer of $3.85 a share.
In a statement to the ASX, JBS Australia president and chief executive officer Brent Eastwood said the acquisition of Huon strengthened the company’s presence with “consumers and customers”.
“We look forward to continue growing on the leading salmon business Huon has created and working with its employees, customers and stakeholders to help the company realise this next phase of growth.”
Huon Aquaculture set to sell for over $400m
THE world’s largest meat processor JBS is set to buy Tasmanian salmon producer Huon Aquaculture for about $425m.
In a release to the ASX at 7pm and in an email sent to staff at 7.22pm on Friday, Peter and Frances Bender said Huon’s board had recommended shareholders vote in favour of the 100 per cent sale of shares to JBS.
It puts the value of the company at about $425m – 38 per cent above its last traded share price of $2.79 and previous market value of $300m.
Mr Bender said Huon’s board had recommended Huon shareholders vote in favour of the sale and would themselves vote all shares held or controlled by them in favour of the sale.
“The Board considers this offer to be compelling for all Huon shareholders and will enable shareholders to realise an attractive value for their shares,” he wrote.
“On a company level, JBS is committed to ensuring Huon continues to be a leading Tasmanian salmon producer that supports the Australian economy, continues to be a significant employer nationally and supports the local communities in which it operates.
“JBS recognises the value of the Huon brand and its staff, and is excited to be part of this next phase of growth for the company.”
The salmon farmer, launched by the Benders in 1986, made a loss of $95.3m for the six months ending December 31, 2020.
It was listed on the ASX in 2014 and it is believed the Benders own 52 per cent of all shares, Australian Super about 12 per cent and mining magnate Andrew “Twiggy” Forrest about 7 per cent.
Shadforth Financial Group private wealth adviser Sam Baker said if the sale went ahead it would give Huon the financial strength it needed.
“JBS is the largest protein food manufacturer in the world,” Mr Baker said.
“They have a huge global network and this will most likely secure existing Huon Aquaculture jobs here and give potential for an expansion of their operations in Tasmania.”
Mr Baker said the sale would be subject to approval by the Foreign Investment Review Board.
Brazilian based JBS has been in Australia since 2007 and this will be its first foray into seafood in Australia.
In the email to staff, the Benders said JBS was listed on the Brazilian Stock Exchange with a market capitalisation of approximately US$15b.
“JBS has been present in Australia since 2007 and is one of the largest meat and food processors in the country with a portfolio of beef, lamb, pork and value added products,” they said.
“In closing we wish to thank all our loyal and valued employees for their contribution to the company and we are extremely proud of what we have built and achieved together.
“The proposed scheme with JBS is testament to the highly attractive business we have all built with our continued focus on high quality and environmentally sustainable salmon farming.”
The Benders said they would provide further information to staff in the coming weeks.
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