Marine Harvest Chile has decided to reduce its smolt volume and its workforce in response to the weak prices in its main markets for Atlantic salmon, as well as “challenging biology in general,” said the company.
A statement released by the Norway-based Marine Harvest Group (MHG) said the smolt stocking for 2015 will be reduced from 17 million fish to approximately 11 million. At the same time, it will cut its manning by around 200 man-years.
In relation to the restructuring, the Marine Harvest Group (MHG) will make a provision of approximately USD 11 million (EUR 9.9 million) in the second-quarter. The corresponding cash effect is around USD 4 million (EUR 3.6 million), it said.
“These measures are taken to contain losses for Marine Harvest Chile until the main markets for the Chilean salmon have recovered. Meanwhile MHG's market organization will put a large amount of effort into developing current and new markets for the Chilean salmon through, among other things, introducing more value-added concepts and new products,” said the statement.
“Marine Harvest Chile is notwithstanding continuously evaluating further measures to improve its cost base, and will in this regard capitalize on MHG's global farming strategy through sharing of best practices and good farming husbandry.”
The company had previously said that consolidation in Chile was a prerequisite for establishing a profitable and sustainable industry in the region.
“MHG believes that the current market disruptions and biological situation make this more important than ever,” it said.
