Question

Please make an assessment and this could be a qualitative one on your opinion of the impact of COVID-19 on Tassal group limited in the future.

Answer 1

Tassal is an Australian salmon farming business that supplies salmon to both domestic markets (i.e. in Australia) and to international markets (i.e. outside Australia).

COVID-19 will have a tangible and significant impact on Tassal group’s business both in terms of quantitative and financial factors as well as in terms of qualitative factors. Tassal is a part of aquaculture market and this industry will see both positive as well as negative ramifications from COVID.

Let us first discuss the positive impact. Outbreak of this pandemic led to an initial increase in demand for ready to eat, canned and processed fish products in both developed and developing countries. Thus the company’s sale of its canned products was positively impacted once lockdown was initially implemented even though the sale of its fresh deli products nosedived.

In future and going forward the group will face several challenges as the negative ramifications of the pandemic will start getting manifested. There will be challenges on the operational front and supply chain as different supply chain partners were differently impacted by the pandemic. Moreover in the near future people will spend cautiously as economies will take time to revive and get back on track. Thus consumer spending level will be muted, at least for some time to come in the future.