Japan’s buying leverage complicates Chile

According to Alfredo Ovalle, one of Chile’s pioneer traders of salmon for the U.S. and Japanese markets and currently general manager Seacorp Seattle in the U.S., traders in general who deal with Japan must be careful in dealing with the current price drop. In an interview with Technopress, Ovalle explained some of the negotiation techniques used in the past that spelled disaster in the long run for Chile. “In order to minimize risk, many traders and importers are promoting the use of Minimum Guarantee Pricing or Advance Payment, promising the producer the hope of a better price in the future. The grave error is that these deals have a completely inverse effect, as history has shown, resulting in a downward spiral worse that we’re witnessing today,” warns Ovalle.