Chilean fish oil and fishmeal producers merge
Salmonoil and Pesquera Pacific Star SA merged their firms in an effort to cope with the decline in the volumes of raw material – mainly viscera and other organic matter from salmon – and to bring their production up to normal levels.
With this alliance, the two companies located in the Region of Los Lagos will account for 12% of the Chilean production of fish oil and fishmeal.
Both companies had been reeling from the fall in raw material while the salmon farming industry, one of its main suppliers, sustained the worst decline in production in a decade.
In 2010, it is estimated that the gross production of salmon will reach 245,000 tonnes, whereas in 2009 it totalled 400,000 tonnes.
In addition to the decrease in raw material supply, Salmonoil and Pesquera Pacific Star must deal with the fact that shipments originating from the artisanal fishing are getting more unstable, especially following the earthquake of February 27.
The seismic event 'demolished' several companies that targeted sardine, jack mackerel and anchovy, raw material used for the manufacture of fish oil and fishmeal, according to reports.
"We were not going to continue competing each of us alone. In these conditions it was better to join forces,†said a top executive who took part in the merger.
Both companies had been working independently for more than 15 years.
Salmonoil owns three independent lines of fishmeal and fish oil as well as a fish oil refinery plant in the municipality of Calbuco.
Meanwhile, Pesquera Pacific Star boasts three plants in Puerto Montt and Castro, in the Region of Los Lagos, and in Puerto Chacabuco, in Aysen.
Last year, these companies produced 105,000 tonnes of fishmeal and fish oil from fish.
The production by these firms is primarily commercialised abroad, in countries like the Philippines, Indonesia, Taiwan, China, Korea, Spain, the US, Brazil, Mexico, Holland and Argentina. Only 10% of what they produce is sold in Chile.
The fishmeal produced by Salmonoil and Pesquera Pacific Star is used for animal feed for aquaculture, shrimp, pigs, birds and in pet food.
Its fish oil, with a high level of Omega 3 and Omega 6 fatty acids, is used in the nutrition industry, in aquaculture, tanneries, paint manufacture and industrial fat manufacture in Chile and overseas.
