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Signs of Recovery for Chile's Salmon Industry

by 5m Editor
22 September 2009, at 1:00am

CHILE - The industry appears to be coming out of its difficulties brought on by infectious salmon anaemia last year.

One year after the peak of ISA virus cases, Fish Farming Expert reports that the Chilean salmon industry is trying to make ends meet and leave a low production period behind, as well as some companies' bankruptcy, workers dismissals, hard and tense negotiations with creditors and suppliers and the postponed enactment of a new regulation.

Even though there have been some enhancement comparing with the beginnings of 2009, there are still several issues that will delay reactivation. Therefore, a full recovery is not expected before the year 2013 according to Estrategia.

For example, promoting the implementation of the new sanitary measures the Chilean Economic Development Agency (Corfo) is dispensing financial guarantees of up to US$ 8 million but only one company has received this benefit.

Regarding to the General Law on Fisheries and Aquaculture (LGPA) the producers are against the new time limit for the aquaculture authorisations that would decrease from indefinite to 25 years, jeopardising their restructuring deals with the banks according to several companies.

In addition, the new regulation includes more than 25 sanitary measures, implying an investment that some of the suppliers are not prepared to realise.

Finally, it seems that the relations of the salmon industry with its creditors and suppliers overcome its worst moments, reports Fish Farming Expert. Nevertheless, they have a lot of work ahead of them considering all the negotiations still in process.

5m Editor

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