Santiago, Chile-based salmon farmer Camanchaca has suffered another mortality incident stemming from an algae bloom at its operations in the Los Lagos region – the second such incident in less than a month.
Salmones Camanchaca’s Leptepu, Porcelana, and Loncochalgua farms in the Comau Fjord were the latest to be hit by the algae bloom. In a 31 March statement, the company estimated the bloom will generate a direct financial loss of USD 2.3 million (EUR 1.9 million), net of compensation estimated from insurance.
Towards the beginning of March, Sernapesca – Chile’s fisheries and aquaculture regulator –reported an increase in mortality at Camanchaca’s Nieves farm in the Reñihue Fjord, in the Los Lagos region, due to low oxygen levels caused by a microalgae bloom. That center contained 664,653 Atlantic salmon weighing approximately four kilograms each. The company activated its action plan to protect against mass mortalities, with Sernapesca monitoring the removal of dead salmon from the center.
A mere three days later, Camanchaca reported another increase in mortality, this time at the Puerto Argentino farming center, located in the same sector. Some 240,000 fish died in total, representing 2 percent of the company’s stock. Camanchaca now estimates that the incidents in the Reñihue fjord will generate a direct financial loss of USD 3.6 million (EUR 3.1 million), net of estimated compensation from insurance.
As a result of these events, Salmones Camanchaca adjusted downwards by 6,000 metric tons (MT) its 2021 estimate for its Atlantic salmon harvest, which it now estimates will total in the range of 47,000 to 49,000 MT.
The company said it expects the impact of the algae bloom will cost the company an estimated USD 4.1 million (EUR 3.5 million).
In 2020, Camanchaca's revenue dropped 52.7 percent to USD 65.8 million (EUR 54.5 million) while expenses remained relatively flat at USD 5.2 million (EUR 4.3 million), bringing earnings before interest, taxes, debt, and amortization (EBITDA) to a USD 8.7 million (EUR 7.2 million) loss.
In its earnings release, Camanchaca said it expects to invest a total of USD 29 million (EUR 24 million) in 2021, of which USD 10.2 million (EUR 8.4 million) will go towards increasing capacity.
