October 14, 2010

Chile's salmon farming region may receive US$500 million investment

Over the next five years, the salmon industry in Chile's Magallanes region is likely to invest approximately US$500 million in fish farms and processing plants.

According to Alfredo Valenzuela, representative of the Association of Salmon and Trout Producers in the area, "Our policy is that the industry will generate investments of US$2 million or US$3 million in farms, which will lead to investments in processing plants. Therefore, if there is a salmon farming project with 200 concessions and an estimated production of 80 tonnes in five years, this will mean investments of around US$500 million."

Valenzuela met with the Head of the Division of Aquaculture of the Subsecretariat of Fisheries (Subpesca), José Miguel Burgos, and the zonal director of Fisheries, Ricardo Radebach, to discuss amendments to the Health Agreement (RESA) and the proposed group concessions. During the meeting it was announced that some 500 concessions could be granted in Magallanes.

Last September, the general manager of Nova Austral S.A., Drago Covacich, said conditions were ripe to be a major power in Magallanes aquaculture. And found that salmonid production could reach 9,000 tonnes in 2011, of which 4,000 tonnes would be trout.

He also predicts that in the next 10 years, the aquaculture industry in Magallanes could increase its production from 6,000 tonnes to 80,000 tonnes, following the entry into force of the new General Law on Fisheries and Aquaculture (LPGA) and the beginning of the process of zoning coastlines, as well as the overcoming of the crisis which originated in 2007 by the appearance of outbreaks of the infectious salmon anemia (ISA) virus.