Why it’s ‘kerching!’ in Beijing for Chile
Chile will continue to be China’s primary source of salmon this year but can expect strong competition from Norway in the future, Gerardo Balbontín, general manager of the Chilean aquaculture company Blumar has predicted.
Balbontín was speaking after Salmones Austral became the fifth salmon producer to join New World Currents, a joint venture set up in 2013 specifically to market Chilean salmon to China. Australis, Blumar, Camanchaca and Yadrán are the original members. Puerto Montt-based Salmones Austral currently has 12 salmon hatcheries, 64 aquaculture concessions and two plants with capacity to process 62,000 tonnes of salmon per year.
Balbontín said that in the last year Chile has become the main supplier of salmon to China with 25,000 tonnes sold out of a total of 80,000 tonnes bought by the Chinese, thereby surpassing Norway. By comparison, Scotland exported 12,000 tonnes of salmon worth £73 million to the Far East – including China – last year.
"We had a competitive advantage that was the penalty imposed by China on imports of Norwegian products because of a diplomatic conflict. That is now under negotiation, therefore we believe that it is likely that Norway’s sales to China will be restored and it will be a competitor in that arena again," said Balbontín.
'Demand will grow'
While on one hand this situation is a threat to Chile, Balbontín admitted that "we also see it as an opportunity that will expand this market. China is a country that requires a lot of food and we think that, by way of increased supply, demand will grow. There are people who are just starting to consume salmon, so we see tremendous potential."
The biggest challenge in China, which is the fourth largest market for Chilean salmon, is to put its ready-to-eat products directly into the retail chain. To date, according to Balbontín, the majority of exports comprise raw, fresh and frozen whole fish.
The United States - where Blumar has formed a strategic alliance with Ventisqueros called BluGlacier - remains Chile’s most important market, and Balbontin highlighted the recent launch of the Institute of Marketing of Chilean salmon there, that has not yet started operations because it is in search of the manager who will lead a variety of initiatives.
The second most important market for Chilean salmon farming is Brazil, a mature market with a consumption of 100,000 tonnes, where demand has maintained its level despite economic problems. “At the same time, markets like Argentina and Mexico are opening up with more and more importance,” Balbontín said.
