Salmonex says Chile Algae Bloom will Depress Harvests Through 2018; Upside Seen with Higher Prices
SEAFOODNEWS.COM [Technopress] and John Sackton - March 11, 2016
With losses now projected at more than 100,000 tons of both atlantic salmon and coho and trout, the scale of the Algae Bloom in Chile is coming into focus.
Salmonex, a company that operates a futures exchange on salmon in Chile and publishes an index, says that the loss of fish will mean a reduction in 2016 harvest from the 806,703 tons produced in 2015 to around 704,763 tons in 2016.
They report a reduction of 95,430 tons of Atlantic Salmon, (15.6%), and a reduction of 17,515 tons of trout, or 20.6% of the total crop. For Coho, the reduction will be 37,000 tons, or 24%. The reductions will be most apparent in the second quarter, and the remainder of the year.
Salmonex also forecasts that for 2017 production will remain flat.
Two years of reduced production is expected to have a positive impact on prices with a forecast of a 20% increase in prices. Further the feed costs of some companies are reduced.
For this reason, Chilean company salmon stocks have soared, as those companies not impacted too severely by the Algae bloom all of a sudden find themselves in a much improved market environment. ...
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