Welcome to FIS   Sponsored By
Subscribe to FIS | Register with FIS | Advertise with FIS | Newsletter | About FIS | Contact us
   


Salmon farm. (Photo: Mainstream)

Financial institutions restrict loans to salmon firms

Click on the flag for more information about Chile CHILE
Tuesday, December 18, 2012, 23:30 (GMT + 9)

Given the serious financial situation faced by the salmon industry, banks in Chile are assessing a possible limitation on loans for companies in the sector, which would be only for working capital. In addition, they would demand more guarantees than usual.

Several sources of the financial system and of the aquaculture industry itself have explained that these measures reflect the current risk level of the sector, considering its low payment capacity.

As a result, banks have to provision up to 40 per cent of the borrowed money, with charges to the month’s profits, reported Economía y Negocios.

In this context, banks have decided to demand more payment guarantees, including property and others associated to money orders that do not belong to the salmon sector.

A senior financial executive recognized that following the restructuring of the sector and the support provided for stocking, "the producers’ aggressive level affected prices and today the industry is having negative margins."

But banks now take precautions before providing funding: they control the debt structures and the capital and limit loans to no more than one year to ensure the payments.

Meanwhile, the sector is facing problems related to salmon prices, supply and demand.

According to the data provided by the international consulting firm Urner Barry, the national salmon fillet changed from a price of USD 3.6 per pound in early 2012 to USD 2.8 in mid-September. That same fillet in 2011 was worth slightly less than USD 6 a pound.

In addition, a report issued by Kontail Analyse indicates that in 2011 the country exported 221,000 tonnes of Atlantic salmon, and this year, the exports have reached 376,000 tonnes.

Anyway, Valeria Mutis, from Rabobank, anticipated that for 2013 " the rate of supply growth is expected to decrease, therefore prices should tend to recover a bit."

The lack of loans is leading to mergers and restructuring of some companies.

"This industry should aim at concentration to keep growing," a businessperson in the financial sector told Economía y Negocios.

For example, the Norwegian company Cermaq acquired Cultivos Marinos Chiloé for USD 110 million; and the salmon firm Friosur SA agreed to pay USD 36 million to acquire the aquaculture division Pesquera Landes SA (Landes Fish Farming), last September.

The general manager of Banco de Chile, Arturo Tagle, argues that the industry must realize "that it has to be strictly managed."

And Manuel Olivares, BBVA general manager, thinks that it is still necessary to achieve "an adequate capitalization of this industry."

Meanwhile, general manager of BCI, Lionel Olavarria, believes that the current biggest concern is the exchange rate.

Related articles:

- A difficult 2013 forecast for salmon firms
- Cermaq to acquire all shares in Chilean farming firm
- Friosur bought Pesquera Landes aquaculture division
 

By Analia Murias
[email protected]
www.fis.com

Photo Courtesy of FIS Member  Mainstream Chile S.A.
 Print


Click to know how to advertise in FIS
MORE NEWS
Ecuador
Jul 12, 16:00 (GMT + 9):
Ecuador says shrimp exports comply with biosecurity protocol
China
Jul 12, 15:00 (GMT + 9):
China suspends imports of Ecuador shrimp on coronavirus risk
Chile
Jul 11, 17:00 (GMT + 9):
Small-scale aquaculture, the focus of interest of IFOP researchers
Japan
Jul 11, 11:00 (GMT + 9):
Landing and auction price for 'common squid' | Todarodes pacificus | 2018-19-20
United States
Jul 11, 00:00 (GMT + 9):
Export│Pacific cod (NMFS)│Volumes and prices: Japan, Korea and China | 2018-19-20
United States
Jul 11, 00:00 (GMT + 9):
Export│Frozen Atka Mackerel│Vomunes and prices: Japan, Korea and China | 2018-19-20
South Korea
Jul 10, 17:30 (GMT + 9):
Dongwon Group signs MOU with National Fisheries Research and Development Institute to develop 'fisheries industry'
Worldwide
Jul 10, 17:00 (GMT + 9):
Other Media | SeafoodSource: Industry leaders say transparency is key to global aquaculture sustainability
Spain
Jul 10, 15:00 (GMT + 9):
Nodosa Shipyard launched the trawler Montelourido that will operate in Falkland Islands
Namibia
Jul 10, 14:30 (GMT + 9):
Samherji Press Release: No jobs were lost in Namibia
Netherlands
Jul 10, 13:00 (GMT + 9):
Other Media | SalmonBusiness: Smoked trout linked to two fatal cases in listeria outbreak in the Netherlands
United Kingdom
Jul 10, 11:50 (GMT + 9):
Other Media | fishfarmingexpert : Loch Duart and Cargill fund Scourie broadband boost
Iceland
Jul 10, 11:00 (GMT + 9):
Other Media | Fish Farmer:Major expansion from Icelandic salmon company
Australia
Jul 10, 10:20 (GMT + 9):
Other Media | FiskerForum: Austral's newbuild heads south
Japan
Jul 10, 06:30 (GMT + 9):
Jetro will support the overseas business of Japanese companies through the exhibition business Alibaba.com



Lenguaje
FEATURED EVENTS
  
TOP STORIES
Dorset Fisherman buoyed by Waitrose support
United Kingdom Waitrose has become the first major UK supermarket chain to sell MSC certified British clams, which are now on sale at counters across 150 of its stores, with sustainable British cockles due to en...
Alaska Fish prices and production for 2019 provide pre-Covid base
United States While this summer’s salmon prices still remain mostly under wraps the Covid-virus has pushed down prices for other popular species. Halibut, for example, is below $4 a pound at several major po...
Statistics │ Imports │ Pollock Fillets and surimi: USA, Vietnam, India, China, Russia │ 2020
European Union Source: FIS.com | Click to enlarge it [email protected] www.fis.com...
Chinese Fishing Trawlers Cleaning Out The Persian Gulf, Iran Daily Reports
Iran Under the cover of night, Chinese vessels are illegally cleaning out fish resources in the Persian Gulf, a pro-reform Iranian daily, Sharq (Orient) disclosed on Wednesday, July 8. Meanwhile, Iranian ...
 
Maruha Nichiro Corporation
Nichirei Corporation - Headquarters
Pesquera El Golfo S.A.
Ventisqueros - Productos del Mar Ventisqueros S.A
Wärtsilä Corporation - Wartsila Group Headquarters
ITOCHU Corporation - Headquarters
BAADER - Nordischer Maschinenbau Rud. Baader GmbH+Co.KG (Head Office)
Inmarsat plc - Global Headquarters
Marks & Spencer
Tesco PLC (Supermarket) - Headquarters
Sea Harvest Corporation (PTY) Ltd. - Group Headquarters
I&J - Irvin & Johnson Holding Company (Pty) Ltd.
AquaChile S.A. - Group Headquarters
Pesquera San Jose S.A.
Nutreco N.V. - Head Office
CNFC China National Fisheries Corporation - Group Headquarters
W. van der Zwan & Zn. B.V.
SMMI - Sunderland Marine Mutual Insurance Co., Ltd. - Headquarters
Icicle Seafoods, Inc
Starkist Seafood Co. - Headquearters
Trident Seafoods Corp.
American Seafoods Group LLC - Head Office
Marel - Group Headquarters
SalMar ASA - Group Headquarters
Sajo Industries Co., Ltd
Hansung Enterprise Co.,Ltd.
BIM - Irish Sea Fisheries Board (An Bord Iascaigh Mhara)
CEFAS - Centre for Environment, Fisheries & Aquaculture Science
COPEINCA ASA - Corporacion Pesquera Inca S.A.C.
Chun Cheng Fishery Enterprise Pte Ltd.
VASEP - Vietnam Association of Seafood Exporters & Producers
Gomes da Costa
Furuno Electric Co., Ltd. (Headquarters)
NISSUI - Nippon Suisan Kaisha, Ltd. - Group Headquarters
FAO - Food and Agriculture Organization - Fisheries and Aquaculture Department (Headquarter)
Hagoromo Foods Co., Ltd.
Koden Electronics Co., Ltd. (Headquarters)
A.P. Møller - Maersk A/S - Headquarters
BVQI - Bureau Veritas Quality International (Head Office)
UPS - United Parcel Service, Inc. - Headquarters
Brim ehf (formerly HB Grandi Ltd) - Headquarters
Hamburg Süd Group - (Headquearters)
Armadora Pereira S.A. - Group Headquarters
NOAA - National Oceanic and Atmospheric Administration (Headquarters)
Mowi ASA (formerly Marine Harvest ASA) - Headquarters
Marubeni Europe Plc -UK-
Findus Ltd
Icom Inc. (Headquarter)
WWF Centroamerica
Oceana Group Limited
The David and Lucile Packard Foundation
Ajinomoto Co., Inc. - Headquarters
Friosur S.A. - Headquarters
Cargill, Incorporated - Global Headquarters
Benihana Inc.
Leardini Pescados Ltda
CJ Corporation  - Group Headquarters
Greenpeace International - The Netherlands | Headquarters
David Suzuki Foundation
Fisheries and Oceans Canada -Communications Branch-
Mitsui & Co.,Ltd - Headquarters
NOREBO Group (former Ocean Trawlers Group)
Natori Co., Ltd.
Carrefour Supermarket - Headquarters
FedEx Corporation - Headquarters
Cooke Inc. - Group Headquarters
AKBM - Aker BioMarine ASA
Seafood Choices Alliance -Headquarter-
Austevoll Seafood ASA
Walmart | Wal-Mart Stores, Inc. (Supermarket) - Headquarters
New Japan Radio Co.Ltd (JRC) -Head Office-
Gulfstream JSC
Marine Stewardship Council - MSC Worldwide Headquarters
Royal Dutch Shell plc (Headquarter)
Genki Sushi Co.,Ltd -Headquarter-
Iceland Pelagic ehf
AXA Assistance Argentina S.A.
Caterpillar Inc. - Headquarters
Tiger Brands Limited
SeaChoice
National Geographic Society
AmazonFresh, LLC - AmazonFresh

Copyright 1995 - 2020 Fish Info & Services Co.Ltd| All Rights Reserved.   DISCLAIMER