Prices and production costs hit the Chilean industry
Julio Traub, president of the Association of Coho Salmon and Trout Producers or Acotruch, argues that the salmon industry is facing a very difficult situation today, due to the sharp increase in production costs. "There have been significant increases in the costs of fish feed, labor and energy, coupled with the new regulations and production standards, which have resulted in a production cost over US$ 5.00/Kg of salmon. The production costs for trout are close to US$ 6.00/Kg, while five years ago these costs did not exceed US$ 3.80 to US$ 4.00/Kg," he said.
According to some figures provided by Mr. Traub, the Chilean trout producers are losing around US$ 2/Kg of fish when exporting to Japan. He added that the overall situation might improve by the end of 2013 as long as the total production volume does not exceed the 400,000 tonnes. "We cannot be sure that the market will expand during 2013. That is why producers should be aware of what the market demands. Otherwise, if we increase the supply, the price will certainly continue to fall," he said.
According to the information published in the local newspaper El Llanquihue, Mr Traub said that some companies have been slow payers due to cash flow problems, adding that the situation could be normalized once those producers start receiving payments from shipments primarily made to Japan.
Some supplier companies claim that there is not only a delay in payments but also in the delivery of purchase orders. Those companies accuse the Government of being just interested in the low unemployment rates seen in the region and not in the stability of the whole salmon cluster.
