Chile’s Salmon Industry makes a comeback

Chilean salmon production is expected to reach 700,000 tons this year
May 23, 2012

n estimated production of 700,000 tons of salmon is expected for CY2012, a 20 percent increase of the 600,000 tons produced in CY2011, according to a recent presentation done to future investors by two important salmon producing companies, Multiexport Foods and Australis Seafoods. 

The industry officials claim that Chile has a great potential of growth in salmon production, with a capacity of expansion of 70 percent over last year’s output. The industry predicts that in the coming years it will exceed one million tons, which will strengthen Chile’s second place in world production, getting close to the Norwegian figures, which is the number one producer in the world. In fact, Norway that produced 1,050,000 tons in CY2011 and has a growth potential of only 10%, reaching probably only 1,150,000 tons, according to these industry officials.

Along these lines, and taking into account that the supply is outpacing demand, the average price per kilogram reached, for the combined fresh and frozen Atlantic salmon,  US$ 4.79 per kilo, this is a 35% fall in price.  On the other hand, the value per kilogram of Coho (Pacific Salmon) fell 4%, while the prices of trout decreased by almost 13%. However, at the industry they believe that at the end of CY2012, prices for salmon in the world should stabilize.

During CY 2011, the salmon industry’s total sales rose 40.4 percent, going from US$ 1,258.4 million in CY2010 to US$ 1,767.1 million, in CY2011. The industry expects sales to rise another 48 percent during this calendar year (2012) totaling US$2,615 million which is higher than before the ISA virus outbreak in Chile. [Source: USDA FAS]