“Salmon farming is not profitable today in Chile”
Chile: The local economist and former president of Salmonchile, César Barros, said that salmon producing companies can return to the path of success, stating that "salmon producers have managed to properly maneuver in the past. I do not think now is different."
The former president of Salmonchile, César Barros, analyzed the complex current moment in the industry, recognizing that today this activity is not profitable, but that it may be in the future.
Barros also said that large currency devaluations in Russia and Brazil divert more production to the United States, which concluded in a price decrease in that market, El Mercurio reports.
"Other than that, we have a serious problem regarding costs compared to Norway and also a reduced competitiveness compared to that country as well. This is a system that is calling for a change," he said.
Although he considers that the industry cannot generate profits today due to low prices and high costs, he said this is still a competitive industry. “Salmon producers have managed to properly maneuver in the past. I do not think now is different," he said. However, he said that sanitary, productivity and market issues cannot be "fix or anticipated from one day to another."
In this vein, he was skeptical of the amendments to the regulation and production model that the Chilean Government seeks to promote, in order to improve the competitiveness of the local salmon industry. "I believe that the changes need to come from the industry itself, through innovation and new ways of doing things," he said.
