June 6, 2006

 

Chile's salmon industry takes off

 

 

Chilean salmon exports grew more than 10 times during the last 15 years from US$159 million in 1991 to US$1.721 billion in 2005 and exports are expected to surpass US$3.0 billion by 2010, according to trade association SalmonChile.

 

However, most producers are more concerned with product quality and value added products than leading world production, SalmonChile said.

 

Chilean salmon go mainly to Japanese, US and European markets. The country also exports frozen boneless salmon filets and smoked sliced salmon.

 

Salmon farming has changed the regions of Aysen and Chacabuco where most of the activity is concentrated.

 

The sector's growth has attracted Norwegian and European producers, eager to form joint ventures with or acquire Chilean salmon companies. 

 

However, Chilean salmon farms are facing a litany of problems.

 

Farm raised salmon has been criticised for containing high levels of PCB's, antibiotics and other chemical residues.

 

Local environmentalists have complained that salmon farming increases nitrogen levels in the sea, thus killing shellfish. They have also urged the government not to grant further permits to salmon producers.

 

Chilean authorities have recently sanctioned eight salmon companies for producing nitrogen that exceeded legal limits.

 

According to SalmonChile, the industry hopes to innovate to improve production, reduce environmental impact and support local communities.

 

The industry is also scrambling to produce a local vaccine for salmonoid rickettsial septicemia (SRS), one of the main infectious diseases that attack salmons and weakens their immune system. It can cause up to a 70 percent mortality rate and costs the Chilean salmon industry around US$100 million in losses annually.