The first quarter of 2021 saw an uptick in salmon export volume from Chile, but the increased exports coincided with lower prices.
Chile exported 223,000 metric tons (MT) of salmon and trout in Q1 – 6.6 percent above the amount exported in the same period of 2020 – but at USD 5.80 (EUR 4.80) per kilogram, the average price was 10.8 percent lower than a year ago, according to the latest figures from the Chilean Salmon Council – an association that groups together four of Chile’s largest salmon-producing companies: AquaChile, Cermaq, Mowi, and Salmones Aysén.
According to the council’s new "Quarterly Report on Salmon Exports,” based on information from the Central Bank and the National Customs Service, in dollar terms, shipments of salmon and trout totaled USD 1.28 billion (EUR 1.06 billion), representing a decrease in value of 4.9 percent compared to the first quarter of 2020. The month of January was particularly challenging, with exports bringing in USD 423 million (EUR 351 million), down 17.1 percent year-on-year. The following two months of February and March began to show recovery, inching up 1.8 percent and 3.2 percent to USD 403 million (EUR 334 million) and USD 458 million (EUR 380 million), respectively.
“Recent monthly salmon export figures show a positive recovery, but we still don’t see pre-pandemic levels. We have seen a growth in the tons exported, which is very important as it allows us to contribute to reactivation and employment, especially in the southern regions,” Chilean Salmon Council Executive Director Joanna Davidovich said. “Although export levels prior to the COVID pandemic have not yet been reached, the exports of salmon and trout for the months of February and March 2021 show a recovery, due to higher demand in the main destination markets such as the United States, Japan, Brazil and Russia.”
The U.S. is the main destination for Chilean salmon exports, with 37 percent of exports destined to that market alone. While shipments to the U.S. fell by 2 percent in the first quarter of 2021 compared to the first quarter of 2020, in the months of February and March export levels were similar to pre-crisis levels.
Davidovich said there were good prospects for salmon farming in 2021, citing a more widespread vaccination process, an expected recovery in sales in hotels and restaurants, and greater penetration of new distribution channels such as online and retail sales.
For the whole of 2020, the value of Chile’s salmon exports reached USD 4.4 billion (EUR 3.6 billion) in 2020, placing the commodity at the top of the country’s food exports and in second place for exports overall – behind only the country’s cash cow, copper, the council reported in January.
The amount of salmon exported in dollar terms was 14.6 percent lower than in 2019. The lower value came despite a larger export total, which grew to 779,044 MT – up 7.5 percent compared to the previous year. The lower value was largely related to how prices were impacted by the COVID-19 pandemic, as lower sales to the hotel, restaurant, and catering channel suffered due to closures and operational limits put in place by governments seeking to prevent spread of COVID-19.
Photo courtesy of the Chilean Salmon Council
