Huon Aquaculture: Questions grow as JBS continues buying up assets

The Brazilian ag giant’s footprint in Australia is set to grow, but its intended aquaculture expansion is, like its pork investments, facing opposition.

Twiggy Forrest’s private investment group Tattarang increased its “substantial” shareholding in Huon Aquaculture Group, after JBS’s announced plans to acquire one of Australia’s largest salmon producers, Huon Aquaculture, for $549.87m.

The footprint of Brazilian-based agricultural company JBS is set to grow in Australia, following recent proposed acquisitions into the pork and aquaculture industries.

But the plans have been met with questions from across the agricultural supply chain.

Last week, private investment group Tattarang increased its “substantial” shareholding in Huon Aquaculture Group, after JBS’s announced plans to acquire one of Australia’s largest salmon producers, Huon Aquaculture, for $549.87m.

Tattarang chair Andrew Forrest said Australia’s aquaculture industry faces “real and immediate challenges”, with sustainability credited as motivation behind the move.

“Our investment in Huon represents a clear commitment to achieve the industry change we want to see,” Dr Forrest said.

Andrew “Twiggy” Forrest. Picture: Colin Murty

“Huon have demonstrated they want to be leaders in the pursuit of sustainable salmon farming practices but my aspirations for this company are even greater. And there are a range of steps that can be taken by new ownership to achieve this. They include the replacement of fish in fishmeal, moving to completely carbon neutral production and applying leading animal welfare standards and practices.”

A statement from JBS confirmed the company will make a takeover bid at $3.85 cash per share, subject to a 50.1 per cent minimum acceptance condition, having entered a pre-bid agreement with founding and major shareholders of Huon Aquaculture, to secure 19.9 per cent of Huon shares.

“JBS welcomes the feedback from Huon shareholders in response to its proposal, in particular comments by Dr Andrew Forrest on behalf of Tattarang Agrifood Pty Ltd,” the statement said.

“JBS shares Tattarang’s view that good business must also be good for the environment.”

JBS announced in June plans to acquire 100 per cent of Rivalea Holdings Pty Ltd, along with 100 per cent of Oxdale Dairy Enterprise Pty Ltd.

The purchase, which is subject to approval from the Australian Competition and Consumer Commission, would increase JBS Australia’s market share of the pork industry.

Victorian Farmers Federation pig group president Tim Kingma said while producers were initially concerned about fair access to kill facilities, JBS has come to the table to allay concerns.

“JBS approached us, we brought those questions up … and 100 per cent they said yes, you will,” Mr Kingma said.

“At the end of the day, JBS needs throughput to make money, they need pigs as well. We were comfortable with that response.”

Mr Kingma said there were many positives to JBS’s investment in Australia’s pork industry.

“They’re talking about increasing Australian product in the processed meat sector,” Mr Kingma said.

“They’re talking about investing in our industry, and I think that’s great. They’ve got a track record not only of buying assets, but improving them.”

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