Chilean salmon output seen to recover 10% in 2011

Chile's salmon output should recover by around 10% in 2011 after sinking more than 30% this year to its lowest level in nearly a decade due to a virus, leading industry association SalmonChile said.

SalmonChile expects gross salmon output to fall to 385,000 tonnes this year, and maintains its outlook for net output, which excludes small fish which are used for fishmeal and oil, at 245,000 tonnes this year - a drop of around 40% from 2009 levels - SalmonChile President Cesar Barros said.

Chile's net salmon output sank to 400,000 tonnes in 2009 from 650,000 tonnes in 2008.

Chile is the world's No. 2 salmon producer, but its salmon industry has been hammered by the infectious salmon anemia (ISA) virus, which emerged in 2007 and is like a deadly flu for Atlantic salmon. Chile's output now heavily lags top producer Norway.

The country's salmon sector was also hit by an algae bloom and by credit difficulties due to the global financial crisis, but escaped the ravages of a February 27 earthquake.

Chile's salmon industry has implemented a series of reforms to try and combat ISA, taking lessons from other producers like Norway, Canada, Scotland and the Faroe Islands, who have all fought the virus.

"It will take us several years to recover, and many years to recover output levels we had in the past," Barros said, adding Chile's salmon industry would need to invest around US$500 million in coming years.