Report Highlights
As a result of a decline in Chiles salmon and trout production, exports of whole eviscerated salmon fell in 2003 after many years of constant growth. In the coming years the industry will continue to expand, but exports of whole eviscerated salmon will grow at a much slower rate, as demand shifts to value added products.
Executive Summary
Salmon and trout (Salmonid) production are the main components of Chile's edible fisheries
sector. Exports were valued at $1.15 billion in calendar year 2003, representing 5.6 percent
of Chiles total export revenues for both Agricultural and Non-Agricultural products. A further
expansion is expected in 2004, as prices of exported salmon and trout products have
increased significantly. Total Chilean aquaculture output will continue to grow based on
development and growth of salmon, trout and new species like turbot. Total exports in 2004
are expected to reach US$ 1.3 billion. Exports of value- added salmon and trout products
are expected to expand at a faster rate than whole eviscerated salmon. The export share of
these processed products has increased from 5 percent in 1990 to 67 percent of the total
export value in 2003.
Note: A Fisheries Products Strategic Indicators Table will not be provided, as Chile does not
import salmon products and is only a marginal importer of total edible fish products.
Production
Output of whole eviscerated salmon fell slightly in 2003, after many years of significant
expansion. Salmon producers in an effort to reverse the decline in export prices observed in 2001
and 2002, agreed to reduce output. Due to this cut back in production, prices recuperated
significantly during 2003. As a result, economic returns expanded 18% for the whole salmon
and trout industry to a record US$1.15 billion in 2003. For MY2004 and the coming years, the
industry predicts that production of whole eviscerated salmon will expand for at least 15% each
year. However, the long term export forecast for whole eviscerated salmon is much more
moderate, as demand is expected to shift to value-added salmon products.
Atlantic and Silver (Coho) salmon are the main species produced in Chile, with marginal
numbers of King and Cherry salmons. In MY2003, over 77 percent of total salmon
production was of the Atlantic species, with Coho salmon representing the remaining 22
percent of total production. Atlantic salmon have an average harvest weight of 4 - 5 kg,
while Silver (Coho) Salmon average 3 - 4 kg, and King and Cherry Salmon average 3 - 5 kg.
Atlantic Salmon reach this weight in 10 - 24 months in the ocean, while Silver Salmon spend
an average of 8 months in fresh water followed by 10 - 12 months in the ocean.
Chiles excellent natural conditions promote efficient, low-cost salmon production year
around. Ideal water temperatures, which fluctuate from 7 to 16 degrees Celsius in the
southern fresh water lakes of Region Ten, and in the ocean south of Puerto Montt, have
contributed to the industry's success. Since the lakes and fjords in these regions do not
freeze during the winter months, the salmon grow faster and reach commercial sizes 6 - 12
months earlier than in Norway, the worlds leading producer. This provides a significant
economic advantage over competitors. Additionally, the cost of land, facilities and labor are
low in these regions. Ample supplies of relatively inexpensive, high quality fish meal and
fish oil (the principal feed inputs) further support the profitability of the sector in that feed
comprises 60 percent of the total cost of production. Most of the feed used by Chilean
salmon producers is manufactured domestically, using the most advanced production and
processing technology available.
Based on these natural comparative advantages, Chiles salmon and trout production and
exports are expected to expand further in the coming years, provided there are no
unforeseen sanitary problems or extreme exchange rate fluctuations. Chile produces and
exports a variety of salmon products, including fresh/chilled, frozen, canned, dried and
salted, smoked and dehydrated salmon. Although the most important component of the
sector is fresh/chilled and frozen whole/eviscerated salmon, exports of value-added salmon
products are increasing at a fast rate.
The Chilean salmon and trout industry is composed of more than 70 companies, most of
which are located in Regions Ten, Eleven and Twelve employing directly and indirectly over
45,000 workers of which 60 percent are women,. Aquaculture is conducted in 234 coastal
concessions for which the companies pay user fees to the government. In year 2010, yearly
exports are expected to reach a level of 2.25 billion dollars.
Consumption
There are no official statistics for fresh/chilled domestic consumption in Chile; figures given
in the PS&D are based on information provided by Salmon Chile, the salmon and trout
producers association. The significant increase shown in MY2003 in the PS&D table is the
result of new information made available by that association. Although domestic
consumption of both farmed and "wild" salmon has been increasing during the last few
years, it is not a significant portion of total demand. This is primarily due to the fact that in
Chile fish in general is less popular than red meat and poultry.
Supermarket chains buy directly from the producers or, in some cases, internally source the
product from their own salmon farms. Up to now there has not been comprehensive
promotional campaigns to increase domestic consumption, because Chile's salmon producers
have been focused mainly on the export market.
Prices
The average export price for whole eviscerated fresh/chilled and frozen salmon increased in 2003, from $2.25/Kg. in 2002 to $2.91/Kg. in 2003. Nevertheless, total export value of whole eviscerated fresh and frozen salmon fell from $256 million in 2002 to $245 million in 2003, due to the salmon producers decision to cut back supplies by 25%.
Trade
Based on a fall in salmo n output and an expansion in exports of value added products,
exports of eviscerated salmon fell significantly in MY2003. In the coming years, whole
eviscerated salmon exports are expected to grow again, but at a slower rate than in the past,
as exports of value-added salmon and trout products expand as producers seek higher
profits. Industry sources have indicated that since transport costs have increased
significantly and Chile is comparatively farther away than other producers from the main
consumption markets, producers will increase the effort to produce a larger percentage of
value added products which will reduce the volume of exports but increase the value.
Exports of value-added salmon and trout products, such as fresh and frozen filet, smoked,
dried & salted or canned, increased another 24 percent in value during MY2003.
Approximately 90 percent of Chile's whole eviscerated salmon production in volume is
exported to Japan, Brazil and the United States. More than 47 percent of total salmon and
trout exports were destined to the U. S. (valued at US$ 544 million), whereas 37 percent
were destined for Japan (valued at US$ 427 million). Almost all Pacific salmon (Coho) and
trout are frozen and exported to Japan, mostly via ocean freight. Atlantic salmon is normally
marketed fresh/chilled and transported via airfreight to markets in the United States, and in
smaller amounts to Europe and Latin America. Chile is presently the main salmon supplier in
the U.S. with slightly over 48 percent of total imports for farmed and ranched salmon,
followed by Canada with a 41 percent share.
In recent years the salmon industry has invested in processing plants to produce more valueadded
products, like smoked salmon. Exports of these products represented just 5 percent
of total exports in 1990, but now represent 67 percent of total exports.
To view the full report including tables, please click here (PDF)
Source: USDA Foreign Agricultural Service - September 2004
