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A STRONG Canadian dollar saw Nova Scotia based Clearwater Seafoods announce a second-quarter loss of $4.5 million The Halifax-based company's loss compared with a profit of $11.3 million a year earlier. Sales dropped to $65.2 million from $70.2 million. This is not the first time that the strength of Canada's currency has affected the company's results.
Chief executive Ian Smith said ."While foreign currency headwinds masked the underlying strength of operations in the first half of 2010, I am encouraged by our continued volume strength in the second quarter and the increasing global consumer and customer demand for our premium, wild, eco-labelled seafood," Clearwater had a loss of nine cents per unit in the quarter compared with earnings of 22 cents per unit in the same period in 2009.
During the second quarter of 2010, strong sales volumes, selling prices, lower costs, among other measures, largely offset the negative impact of a stronger Canadian dollar, the company explained..
Mr Smith added: "Taken in combination with our recent pricing, cost savings and other productivity initiatives, I believe Clearwater is poised to deliver markedly improved operating margins and earnings performance through the balance of 2010."
A few months ago John Risley, the founder of Clearwater, said Canadian seafood producers on the Atlantic Coast should look more to overseas markets if they wanted to increase profits and gain new customers. "Growth has to come from higher prices and that requires a huge marketing effort around the world," he maintained, suggesting that Asia and Russia were good places to look.Clearwater sells its seafood to quality restaurants and food service operators with most of its markets outside Canada in countries such as Japan and the United States.
Just recently seafood firms in Nova Scotia have been forging trade links with Grimsby, Britain's ain seafood trading centre.
Should fisheries be closed during breeding time to allow stocks to reach more sustainable levels?
