It goes from bad to worse for Chile’s salmon industry. In 2015, the sector was challenged by low prices in key export markets, increased competition from rival producer Norway and high production costs. This year, not only has production been significantly affected by ongoing algal bloom problems with the loss of around 31 million fish in the first-quarter, now it finds itself being blamed for the phenomenon, at least in part, by sections of the country’s fishing industry, who have been preventing what salmon there is from reaching market.
Fishermen have been prevented from harvesting seafood because of toxins found near the Chilean coast caused by the algal blooms. After walking out on compensation talks with the government, complaining that the offer on the table was was inadequate, they have blocked roads and ports in the south of the country, including the island of Chiloe, where much of the processing capacity is based. Mainland salmon processing plants have also been closed.
According to producer association SalmonChile, the industry could be losing USD 9 million (EUR 8 million) a day while the situation persists.
Because of Chile’s plight and production challenges in other key regions, its salmon prices have soared this year. Prices last month were up 50 percent year-on-year to USD 5.40 (EUR 4.77) per pound, equating to around USD 11.90 (EUR 10.50) per kg, but had eased slightly since.
Analysts now forecast Chile’s total salmon production to fall by 20 to 25 percent to around 485,000 MT this year.
Scientists say this year's El Nino weather pattern could be a key factor in Chile’s bloom problem, as it warms the ocean and creates bloom-friendly conditions.
