Brazilian meat giant JBS, which earlier this week announced a move to buy Australian salmon producer Huon Aquaculture, said it expects bulk buying power will allow the company to make efficiency savings if and when the deal for the Tasmanian company goes through.
The company's bulk buying leverage will likely prove to be useful for Huon, amid soaring raw material costs.
Feed is far and away the highest percentage of the cost of salmon production. Conventional wisdom puts feed costs at around 70 percent of a salmon farming company's overall costs, though several factors dictate the exact share.
