Overproduction of Coho salmon complicates the market
Chile exported 112 000 tonnes of Coho salmon last year, representing a 25 percent increase compared to the previous year according to the Undersecretary of Fisheries and Aquaculture (Subpesca). Given that Japan is the largest consumer of Coho salmon and the Japanese demand is very stable, the problem is set to get worse.
Óscar Garay, consultant in the local salmon industry says that there is not only frozen fish stocks in Japan but also in Chile. Therefore, one can foresee that prices will be very low the next season. "In fact, some companies are already eliminating small fish in order to reduce their potential losses," he reveals.
Meanwhile, Julio Traub, president of the Association of Chilean Producers of Coho salmon and trout (Acotruch), says that the current inventory of Coho salmon and trout in Japan is the largest in the past years, pushing prices down.
Currently, the price of Coho salmon is around US$ 3.20/Kg FOB. "This means that the Chilean producers are going to lose US$ 1.40 per exported kilogram in the next season," Mr Traub comments.
According to the local newspaper El Llanquihue, the situation would be more complicated for Rainbow trout, since its production cost is even higher.
