JBS, a leading meat processor, is making a strategic investment in its Huon Aquaculture salmon-farming business in Australia. The company plans to inject A$110m ($73.6m) into Huon’s Whale Point farm in Tasmania, focusing on building a salmon hatchery capable of rearing seven million fish. This project marks JBS’s entry into the seafood industry after acquiring Huon in 2021. Headquartered in Hobart, Tasmania, Huon is the second-largest salmon farming business in Australia.
The Whale Point project is designed to enable Huon to prolong the salmon farming cycle in tanks, allowing the fish more time to mature before being transferred to sea-based pens. Scheduled to commence next year, the construction phase will create 150 jobs, adding to Huon’s current workforce of 1,000 employees in Australia. Henrique Batista, Huon’s CEO, highlighted that “salmon will spend most of its production cycle on land thanks to the strengthening of our installed capacity.” Additionally, the investment will boost the water reuse rate at the facility to 99%.
Furthermore, Huon’s commitment to sustainability is evident in its waste management practices. Waste from the Whale Point site is processed, treated, and repurposed as fertilizer for local cherry farmers and in pet food production. Established in 1986, Huon offers a wide range of farmed salmon products, including fresh Atlantic salmon, smoked salmon, caviar, and pâté, targeting retail consumers.
The acquisition of Huon by JBS followed a rigorous approval process involving Australia’s Foreign Investment Review Board, local courts, and Huon’s shareholders. The deal solidified Huon’s position with 13 production sites and three processing facilities across Australia. As part of its growth strategy, Huon had invested over A$350m in infrastructure and sustainable practices in the salmon production cycle leading up to the acquisition.
In the fiscal year 2023, JBS reported revenue of $73bn, a slight increase from the previous year. However, adjusted EBITDA declined by 49% to $3.5bn, resulting in a net loss of $199m compared to a $3bn profit in the previous year. The Australia division, encompassing beef, pork processing, and now salmon farming, saw revenue decrease by 1.8% to $6.2bn, with adjusted EBITDA rising to $454.7m, although a net profit figure was not disclosed.
