Big salmon farmer Tassal says a new acquisition will allow it to integrate its prawn operations and underpin future production.
Tasmanian-based Tassal said it had acquired 800 hectare property Mid Farm, between its existing Prosperpine prawn farm and its Billy Creek property in Queensland.
It financed the deals to buy Mid Farm and Billy Creek by divesting other land.
"Securing Mid Farm ... creates the potential to substantially improve operational aspects for the whole Prosperpine farming precinct," Tassal managing director and chief executive Mark Ryan said.
"The completion of these property acquisitions provides the foundation for Tassal's strategic platform to deliver 20,000 tonnes of annual prawn production."
The completion of these property acquisitions provides the foundation ... to deliver 20,000 tonnes of annual prawn production.Mark Ryan
In a recent company presentation, Mr Ryan said salmon production had outperformed expectations, with harvest biomass currently where it had been expected to be in five years.
He said Tassal was well positioned to capitalise on positive consumer trends.
Mr Ryan said they were "increasing demand for trusted, sustainable Australian brands, more in-home eating and cooking, increasing demand for easy to prepare meal solutions, greater health awareness, growing digital consumption and e-commerce".
"Exceptional strategy execution has reduced cost of operations (dollars per kilogram) for both salmon and prawns and maintained a strong balance sheet.
"Tassal's strong balance sheet has supported continued expansion, replacement and upgrading of infrastructure ... optimised operations and is responsibly seeing the company through a significant period of uncertainty."