Hi John Horgan et al
In Norway, the big companies are spending $32- to
$40-million for a license.
Do you know what the big companies pay in BC? $5000. In
other words, they are not investing in BC, they are raping BC oceans.
You need to include in your fish farm policies a drastic
increase in license fees. Charging the same as in Norway would bring in for the
120 licences the industry claims it now has in BC: $32 X 120 = $3.8 Billion to
$40 X 120 = $4.8 Billion. That is how much BC is subsidizing fish farms to ruin
our oceans.
Raise the license to $32 million and Marine Harvest, Cermaq
and Grieg Seafood would pay it because they are doing so in their own country,
Norway. And it is a bargain rate for them.
See: http://fishfarmnews.blogspot.com/2018/03/bad-news-bites.html.
Item 393.
“393. Huge License Costs - Norway: http://salmonbusiness.com/have-the-salmon-auction-winners-paid-too-high-a-price-for-the-gold/.
"“Adding a minimum price of NOK 120 (€ 12.7) million per license is
incomprehensible. In areas with the highest dominance of listed companies, the
real price can quickly reach between NOK 200-250 (€ 21-26) million per license.
You don’t have to be a mathematician to figure out that this is a gratuitous
fit for only a handful of the major publicly listed companies,” NSL Managing
Director Robert Eriksson said."
At an exchange rate of .16, the license cost in CDN dollars is: 120 X .16 = S19.2 million; 200 X .16 = $32 million, and 250 X .16 = $40 million.”
At an exchange rate of .16, the license cost in CDN dollars is: 120 X .16 = S19.2 million; 200 X .16 = $32 million, and 250 X .16 = $40 million.”
DC Reid
**********
Note that the reason Marine Harvest, Cermaq and Grieg Seafood can spend this much is high fish farm profit margins. Typically the margin is about 23%, which is very high, but the margin can be as high as 45%, which is phenomenal. Look at this list: http://salmonbusiness.com/northern-dominance-on-profit-among-norways-largest-salmon-farmers/.
The graph is:
And in 2017, one fish farm topped 80% profit EBIT!: http://salmonbusiness.com/a-whopping-80-2-percent-has-korshavn-havbruk-topping-norwegian-producers-profit-margin-list/.
**********
Note that the reason Marine Harvest, Cermaq and Grieg Seafood can spend this much is high fish farm profit margins. Typically the margin is about 23%, which is very high, but the margin can be as high as 45%, which is phenomenal. Look at this list: http://salmonbusiness.com/northern-dominance-on-profit-among-norways-largest-salmon-farmers/.
The graph is:
And in 2017, one fish farm topped 80% profit EBIT!: http://salmonbusiness.com/a-whopping-80-2-percent-has-korshavn-havbruk-topping-norwegian-producers-profit-margin-list/.
No comments:
Post a Comment