Cermaq Reduces Farmed Salmon Production Outlook
Cermaq reported today that it expects its farmed salmon production to total 50,000 metric tons, 3,000 metric tons less than its previous projection, due to sea lice infestation and the outbreak of infectious salmon anemia (ISA) in Chile.
Sea lice and ISA have increased mortality rates and reduced the average slaughter weight in Chile, driving up the Norwegian company's cost of production by 2.5 krone (49 cents) per kilogram from the first quarter to the second quarter of 2008. Because the price of small fish is less than large fish, Cermaq's Chilean operations have not benefited from the price increase of large salmon in the United States.
Additionally, Cermaq is accelerating the harvesting of three salmon farm sites due to sea lice and ISA.
The situation in Chile is challenging, and the company has implemented numerous measures to improve the sanitary conditions of its Chilean operations, says Cermaq CEO Geir Isaksen.
Cermaq is one of the world's largest salmon-farming companies.