February 14, 2011

Chile increases shipments of salmon to US

Chilean Atlantic salmon has doubled its US market presence in seven months, rising in 2010 from 29% in May to 51% in December and regaining its top spot of being after jumping from second place after Norway, stated Rabobank in a report.

The increase in shipments of national salmon to the US follows the health and economic crisis in 2007, due to the spread of the infectious salmon anemia (ISA) virus in salmon farms across Chile.

The virus seriously affected the production of salmonids, which consequently deminuished exports.

"Increasing production in Chile, due to extremely strict health measures which have been imposed in the South American country, means that the smolts are growing exceptionally well," reads the Rabobank report.

It also clarifies that "the outbreak of the ISA virus appears to be completely controlled, as it has become no more than a low risk condition which can be regularly overcome by new density and biosecurity measures," reports Diario Financiero.

The report also states that the larger supply of Chilean products may bring a decline in prices, as companies from Norway will now have to "demonstrate a more aggressive attitude in maintaining its presence in the United States."

This "would prepare an ideal scenario where prices are reduced in the second half of 2011," says Rabobank.

The major leaders in the field that will accommodate for these price declines will be producers who "are competing to sign new contracts and renewing others with the retail sector."

An increase in inputs is also expected, mainly from fish meal, and "the general rise in prices of food commodities."

The report notes the salmon must go against the trend of rising food prices by "increasing production and, thus, easing the costs to consumers."