1 Sep 2015

Sanford gets ready to leave tuna industry

1:40 pm on 1 September 2015

Fishing company Sanford has sold one of its boats as part of its plans to exit the tuna industry.

The Sanford Seafood factory gates

Photo: RNZ

The company has sold the San Nanumea from its Pacific Tuna fleet in a deal that remains confidential for now.

The company said talks with potential purchasers of its remaining boat, San Nikunau, were continuing.

Tuna accounts for about 5 percent of its sales, but Sanford's chief financial officer, Clement Chia, said low and volatile prices for skipjack tuna, plus higher costs of accessing the fishery, meant the returns had become unsatisfactory.

"It's an unprofitable business for us."

Mr Chia said the sale of these vessels would provide more certainty and stability in Sanford's earnings.

Get the new RNZ app

for ad-free news and current affairs