Sealord CEO Doug Paulin Shares Skepticism about the Future of the Industry

Statistics released by Stats NZ indicate that sales across various industries have surged by $6 billion in the past three months. Furthermore, salaries and wages have outpaced inflation, showing substantial growth.

However, Doug Paulin, the CEO of Sealord, a company that is half-owned by Māori, paints a grim picture of the commercial fishing sector. Profits have dwindled, and there is no immediate sign of improvement.

Paulin comments, “All fishing companies are saying the same thing. It’s very difficult to make money at the moment. With pricing not matching that level of cost increase, yeah, profits are down substantially, and that is right across the board.”

The Stats NZ data reveals that total sales reached $191 billion, marking a significant increase of $6.2 billion or 3.4 percent over the last three months. Salaries and wages also surged to $31 billion, showing a substantial increase of $2.4 billion or 8.7 percent.

Among various sectors, the arts and recreation services sector experienced the most remarkable growth in the June 2023 quarter, boasting an impressive 18.5 percent rise in salaries and wages. In contrast, the information media and telecommunications sector saw a slight decrease of 0.5 percent, and forestry and logging experienced a marginal decline of 0.4 percent in salaries and wages.

Despite the challenges faced by the fishing industry, Sealord has recently made a $10 million investment in the Ara Rākau program in partnership with Te Arawa Fisheries. This investment is aimed at providing jobs in forestry for local communities and creating opportunities for local businesses. Paulin emphasizes the importance of involving local Māori-owned nurseries in the project.

While Sealord is making efforts to support its employees, they are also working closely with the board on contingency plans in case the situation does not improve.

Paulin remains hopeful that price increases can be achieved, allowing them to weather the challenges. However, he acknowledges that the next 12 months will likely continue to be difficult for Sealord.

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