May 11, 2011

 

AquaChile aspires to be the world's aquaculture producer

 

 

AquaChile intends to be the world producer of aquaculture goods and enhance its strategic post internally.

 

The Chilean company is planning to explore alternative goods to be produced in Brazil and possibly in Vietnamese territory. There is also willingness to expand its presence in Costa Rica in the tilapia business and expand into Panama, according to the media.

 

AquaChile expects to raise about US$350 million with its debut on the stock, of which over two-thirds will be allocated to finance their plans for the next six years, which will require a total of US$470 million.

 

The rest will be used to reduce the debt of about US$380 million, which had to be renegotiated with banks in 2009 when the salmon industry faced a crisis caused by the spread of the infectious salmon anemia (ISA).

 

Company executives hope to produce about 174,000 tonnes of salmon and trout, and 41,000 tonnes of tilapia in 2016.

 

Meanwhile, the company advances in the search for partners who would contribute to progressing in its expansion strategy.

 

As part of this process, AquaChile has just signed an alliance with the French multinational company Diana, which is the world's largest producer of pet food flavour and of natural solutions for food products.

 

The firm is also considering the construction of a plant in Costa Rica to produce goods based on tilapia waste at the end of 2011.

 

An agreement was also signed with Agro Comercial Terramar, a supplier of products for the aquaculture food industry.

 

"As never before the benefits of the geographic diversification have been observed. Today, the presence in other countries producing other species has more sense," said AquaChile general manager, Alfonso Marquez de la Plata.

 

With regards to the possibility of producing goods in Brazil, the businessman indicated that their presence in that country has never been ruled out.

 

"It is very interesting from the aquaculture viewpoint and we have taken the past into consideration to do something in tilapia," he pointed out.

 

He also mentioned the possibility of association with other producers, such as the Rio Group, owner of the salmon company Friosur S.A.

 

"There has always been a great connection. Indeed, it is one of the things we have never discarded. There have been talks and I have no doubt that there will be further communication in the future," Márquez de la Plata added.

 

As part of its expansion plan, AquaChile will double its current volume of 20,000 tonnes of tilapia after investing US$57 million in Costa Rica and in Panama.

 

Currently, 15% (about US$70 million) of annual turnover of the company accounts for the sales of tilapia.

 

AquaChile CEO foresaw that by 2016, out of 215,000 tonnes that the company produces, about 20% will come from this species and the remaining from salmon, trout and coho.

 

In connection with the short-term future, Marquez de la Plata estimated that the increased presence of Chilean companies in the international salmon market after the crisis faced by ISA will not result in lower prices and the consequent drop in profitability.

 

"In the emerging countries and in those developed countries, the demand for food is growing day by day. We are seeing stable future prices at present levels. The potential salmon production in the world is 2.5 million tonnes and last year 1.8 million were produced. From now on to 2014-15, the demand is covered," he concluded.