Salmon processing plant. (Photo: Stock File/FIS)

Salmon production slowdown forecast

CHILE
Friday, June 01, 2012, 04:10 (GMT + 9)

A company from the Chilean salmon industry forecasts salmon production will rise only 3 per cent next year compared to 2012: it would change from producing 780,000 tonnes to 800,000 tonnes.

Blumar Seafoods consider that next year there will be a slowdown of productivity gains since the estimate for 2012 "represents an increase of almost 38 per cent over 2011 and nearly double what was produced in 2010."

The company executives also indicated in the rationale of its financial statements that for 2013 the growth of Norway would also be marginal.

As a result, "a strong recovery of salmon prices should be reflected in the price of salmon so that the profitability and viability of the business can be recovered," the firm added.

To Blumar, the 13 per cent increase in the aggregated offer from Chile and Norway "has caused average prices to fall during the first quarter of 2012 by nearly 24 per cent from the average of 2011 and by approximately 30 per cent over the 2010 average" for Atlantic salmon.

Meanwhile, for the rest of the year there is still uncertainty, Diario Financiero reported based on the analysis by Blumar.

So far, several salmon firms have announced a reduction in smolts stocking for the next harvest.

However, the industry assures the problem is already in the water because it is estimated that currently overproduction in the sector reaches about 25 per cent.

This situation forces producers to face two possibilities in order to avoid losing capital: sacrifice the salmon in saltwater or try to quickly open new markets in the region.

In order to evaluate the incorporation of new channels of distribution in Brazil and in Mexico, next Tuesday representatives from the Ministry of Foreign Affairs, of ProChile and of the main companies in the salmon industry will meet in Montt port.

The first step was taken this week when a public-private campaign of the Chilean salmon industry was launched in Brazil so as to promote the consumption of this resource. This initiative is led by the Association of Salmon Industry SA (SalmonChile) and by ProChile.

On the other hand, Carlos Odebret, SalmonChile general manager, explained that while mortality rates of Pacific salmon and of Atlantic salmon doubled compared to last year, "they are far from resulting as in the crisis scenario of infectious salmon anemia (ISA) virus," Estrategia reported.

The causes of this mortality "are diverse, among others, naturally lies the growth of farms, so there are more fish exposed to disease," the leader of the Association added.

Related articles:

- Massive campaign to promote Chilean salmon in Brazil
- Salmon companies reduce stocking levels

By Analia Murias
editorial@fis.com
www.fis.com

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