Executive Summary
Sanford Limited is a firm based in New Zealand that is known globally for its commercial fishing. The company has been operating for more than 150 years now and was ranked 55th in the Australian Reporting Awards (ARA). The company’s supply chain collaborates with suppliers, staff, and other stakeholders through precision seafood harvesting (PSH), a sustainable framework in large-scale fishing. The firm has partnered with Aotearoa Fisheries in a project known as Primary Growth Partnership (PGP) that embraces new technology in fishing, such as the application of radio-frequency identification (RFID) that detects fish.
Additionally, Sanford has acquired the MoTeC system, which is energy-saving in its San Discovery and San Enterprise vessels. The environmental impacts include fishing of protected species such as sea lions despite using sea lion exclusion devices (SLEDs). There were concerns over the company’s San Waitaki, which was caught illegally fishing in restricted areas. That compromised the company’s sustainability policies, raising ethical and social issues. Climate change has influenced Sanford’s fishing, whereby damage to the ecosystem may lead to the production of fish that is not safe for consumption.
Sanford has used various operational and management practices in its fishing business. For example, operational excellence has been enabled through the execution of business strategies, growth, and enhancing processes that add value and increase efficacy. Additionally, proactive communication has been meant to engage all the stakeholders on the proposed issues and updates about the business performance and investment. Sanford has also been focused on governance that embraces value addition by maintaining high standards and effective practices in operations. All employees’ demands are accommodated through remuneration and benefit schemes. Sanford Ltd encourages quality assessment by setting ground rules that perfect sustainable fishing.
Introduction
Sanford Limited is an established New Zealand-based fishing firm that farms, harvests, processes, stores, and markets quality seafood. The company was founded over 150 years ago by Albert Sanford, who started the fish market (Skelton, 2022). In 1971, the company was awarded for its exemplary performance in promoting and exporting fish products (Skelton, 2022). The company has a rich background in sustainable frameworks such as Quota Management Systems (QMS) and Maximum Sustainable Yields (MSY), among others (Annual Report: Sanford Ltd, 2021). Though Sanford, various codes and practices on fishing have been developed that have had a positive impact on environmental conservation in fishing
Some remarkable sustainable marks include recycling, minimal fuel, water, and electricity usage, and reduced greenhouse gas emissions. The company was ranked 55th in the Australian Reporting Awards (ARA) in 2022, where it fell under gold award recipients. The company reported a revenue of $531.9 million, showing significant recovery from the Covid-19 effect, noting an 8.6% rise from 2021’s financial results (Sanford 2022 full year results: Perseverance produces significant recovery from Covid impacts, 2022). The company is among the key firms executing sustainable processes globally.
Sanford’s Supply Chain
Sanford Ltd has effectively collaborated with its suppliers, employees, and other stakeholders to produce and distribute seafood products that do not involve processes that threaten the environment and future business. The company has been a key participant in precision seafood harvesting (PSH), a commitment to sustainable fishing. The framework is known to do away with traditional trawl nets, containing fish in a large container, allowing selection for required species and size (Sanford, the home of sustainable seafood, 2022). Sanford Ltd and Aotearoa Fisheries have put more than $26 million in place for a project known as Primary Growth Partnership (PGP).
Under the project, anglers have been advised to partner with companies to develop a technology that has advanced fishing vessels. For instance, radio-frequency identification (RFID) has been used to detect zones with concentrated fish. Additionally, PSH has been key in protecting small fish that can escape through harvest systems that do not trap non-fish, keeping them unharmed. Fish is brought to the deck while swimming in the liner and in perfect condition, meaning it is fresh and consumers can be assured of high value, which is an evident practice in sustainable fishing.
Sanford Ltd has effectively managed energy through fleet management that monitors the effectiveness of the fishing vessels and the technology in place. For instance, a data acquisition system called MoTeC has been installed in fishing vessels to collect information on fuel consumption when working in different weather conditions. Additionally, the deep-water fishing vessels San Discovery and San Enterprise have been configured with Dyneema material put in nets that resist abrasion and chemicals.
In contrast, the vessel floats in water during fishing (Sanford Ltd: Stock price & latest news, 2022). That means there is improved eco-efficiency, which is a sustainable action. Other supply chain metrics include designing foiled trawl doors in equipment to maintain costs in maintenance and prevent any adverse effect on the fish being caught, preventing any possible food poisoning from logistical activities by the time fish products are taken and consumed in the market.
Economic, Environmental, and Social Impacts
Critical factors have affected Sanford’s sustainability processes, some of which are global, ethical, and social. First, protected species are incidentally caught in what is called accidental by-catch. For example, sea lions have often been harmed when encountering grids from fishing vessels. Despite using sea lion exclusion devices (SLEDs), several sea lions are endangered, posing a threat to their living, which is a drawback to Sanford’s sustainability objectives (Sanford, the home of sustainable seafood, 2022).
Ethically, Sanford is supposed to sustain raw materials, which means commercial fishing could negatively impact various biological systems. The ethical concern in this aspect is that Sanford’s deep-water vessels sometimes fish at Chatham Rise, a significant area in the ocean on the eastern side of New Zealand, a significant productive biological area that needs protection (Bediye, 2022). The repercussions may harm the ecosystem even when exclusive rights are obtained to fish in these protected areas.
The social challenge of overfishing is felt since many human activities threaten fishery resources. Sanford has been critical in maintaining the recommendable amount of fish stock. However, due to the competitive nature of businesses, it would be difficult to limit the activities to conform to MSY as the company seeks to retain its competitive advantage.
For example, in 2021, Sanford’s San Waitaki was forfeited after it was illegally caught fishing in protected zones (Carreon, 2021). In New Zealand, there are protected areas known as benthic protection areas (BPA) with sea beds where the governments prohibit fishing. Despite the firm’s staunch policy on sustainable fishing, it is hard to control the operational roles as workers have targets. Numerous occasions may show a breach of the commitment towards combatted fishing (Carreon, 2021). There is a need for an effective strategy that does not have double standards for perfecting sustainable fishing.
Globally, climate change has been a key determinant of many agricultural activities. For example, increased mean air temperature and altered precipitation patterns have changed how fishing is done. As a result, Sanford has been fishing in areas threatening marine and freshwater species (Bediye, 2022). That means the distribution of fish products may lead to diseases for people who consume the fish, endangering people’s lives, a matter that does not conform to sustainability.
Marine ecosystems, such as coral ecosystems, have been damaged, so it has become increasingly complex to conserve the environment when commercial fishing is undertaken. Sanford faces challenging moments in blending with the new climate change in its fishing because of the carbon monoxide that dissolves in oceans and brings high acidity to sea creatures (Dammannagoda, 2018). These effects mean that the company has to be innovative enough to combat the constraints of climate alteration in fishing zones.
Operational/Management Approaches
Operational Excellence
Sanford Ltd committed itself to focus on targets meant to be covered in 2022. Operational excellence comprises executing business strategy, growth, and improving operations to add value, hence driving efficacy in the outcome in its fishing outcomes. Regarding strategy, the priority was to rebuild massive profitability by adding 100% profit contribution (Sanford, the home of sustainable seafood, 2022). Additionally, delivery on developing business chances in wild catch would improve profits. The growth would be perfected by investing in farming infrastructure, including modern ocean fishing tech.
The other excellence was to effectively compete with the SanCore Anchor project, which includes processing, supplying, and leveraging financial systems before the end of 2022 (Sanford, the home of sustainable seafood, 2022). Sanford committed itself to completing equipment construction and installing new marine extracts machinery in Blenheim. Lastly, the company laid firm policies that refined the business by creating pathways that excelled and paved the way for post-COVID stabilization (Fox, 2020). All these operational excellence commitments would ensure that Sanford’s sustainability program is effectively executed.
Proactive Communication
Sanford has been making efforts to engage with all stakeholders, such as suppliers, employees, partners, and consumers, on clarity in business. Through the move, the company has been committed to delivering quarterly updates to investors, which include full and half-year results for 2022 (Sanford Ltd: Stock price & latest news, 2022). Additionally, Sanford Ltd has been setting the bar high in promoting open and transparent communication to stakeholders and other business communities. That matter has been building relationships and,hence, meeting fisheries’ objectives through collaborative aspects within the company.
Furthermore, Sanford has provided meaningful feedback to media on inquiries related to their sustainable goals, hence having commercial transparency in the operations. The company believes in properly handling issues pending from previous years’ handovers (Sanford Ltd: Stock price & latest news, 2022). For example, Sanford has encouraged its employees to create comprehensive reporting habits across all its financial systems on a parallel basis.
Governance and Leadership Focused on Value Addition
The board of directors for Sanford has been instrumental in building long-lasting value for shareholders and staff. Through the highest standards of governance that support effective practices, value creation has been honored. For instance, working hard to meet integrity and ethical standards has been rampant in the company (Lotze et al., 2021). The leadership part is seen through having the opportunity to accommodate staff demands such as remuneration and benefits schemes.
Management has been improving how employees are handled, especially when there is an issue pertaining to operational roles. For instance, creating a quality assessment team that sets ground rules on sustainable fishing has been perfected (Sanford Ltd: Stock price & latest news, 2022). In this case, it becomes easy for workers to navigate relevant courses of action concerned with the company’s goals, effectively transitioning to safe working zones. The management of Sanford Ltd, through the policy-making department, encourages all stakeholders to express their opinions regarding sensitive matters such as the environmental impact of fishing.
Conclusion
Sanford Ltd is a company based in New Zealand that has indulged in fishing activities. The firm has been critical in establishing measures that impact sustainable fishing, such as the use of MSY, QMS, and other strategies. The company was ranked 55th in the ARA awards, where it took the gold category.
The company’s supply chain operations have enabled its objectives to be achieved effectively through PSH and PGP frameworks. The $26 million budget has seen the adoption of technology and other innovations that target sustainable improvement fishing. For example, using RFID has successfully prevented harming protected sea creatures. Other technologies, such as MoTeC and Dyneema, have boosted the firm’s sustainability agenda.
The key challenges dragging sustainable fishing include accidental by-catch of sea lions and overfishing. Climate change has also affected how Sanford deals with sustainability measures because some fish stock may have harmful content that may not be safe for human consumption.Some of the operational matters that Sanford Ltd worked on in 2022 include operational excellence, proactive communication to all stakeholders, and governance that accommodates effective leadership. Sanford’s goals can be achieved if all business strategies and governance are critically applied.
Reference List
Sanford, the home of sustainable seafood (2022) Web.
Annual Report: Sanford Ltd (2021) Web.
Sanford 2022 full-year results: Perseverance produces significant recovery from Covid impacts (2022) Web.
Sanford Ltd Stock price & the latest news (2022) Web.
Bediye, D., (2022) Challenges and prospects of capturing fisheries and the ways forwards in developing countries. (online) OMICS International. Web.
Carreon, B., (2021) Sanford Limited says it accepts the judge’s decision on the forfeiture of the vessel due to illegal fishing. (online) SeafoodSource Official Media. Web.
Dammannagoda, S.T. (2018) ‘Sustainable fishing methods in Asia Pacific region’, Sustainable Aquaculture, 2(5), pp.95–122.
Fox, A. (2020) NZ’s biggest fishing company pins flat profit on climate change. (online) NZ Herald. Web.
Lotze, H.K., Bryndum-Buchholz, A., and Boyce, D.G. (2021) ‘Effects of climate change on food production (fishing)’, The Impacts of Climate Change, 3(3), pp.205–231.
Skelton, N. (2022) Sanford shares warfighter support strategies at International Military Helicopter Symposium. (online) Defense Logistics Agency. Web.