May 16, 2008

Marine Harvest incurs losses due to animal health problems in Chile

Marine Harvest, the world's largest producer of farmed salmon and trout, has been adversely affected by animal health problems in Chile.

Disease and parasite problems in Chile have increased operational costs and prompted production losses for the Norwegian company.

Marine Harvest reported Q1 losses of about 19 percent compared with the same quarter last year. Net revenue during the period was US$612 million, significantly less than 2007's US$750 million.

Much of the company's problems can be traced to Chile, where over the last 12 months, infectious salmon anemia (ISA) has infected numerous salmon farms.

The disease is caused by a highly contagious virus that can cause death to fish but does not affect humans.

Marine Harvest has already taken a number of operational actions to help improve the situation in Chile, said CEO Ase Aulie Michelet.

At present, 18 Chilean farms have been listed by the government's National Fishing Service as "outbreak" sites. Half of those farms belong to Marine Harvest. The company also owns 13 of the 22 farms the agency lists as "suspicious."

The ISA situation has prompted Marine Harvest to undergo a major restructuring of its Chile operations.