Chilean Salmon Farmers Say Production Cuts, Consolidation Needed to Counter Low Prices, High Costs
SEAFOODNEWS.COM [Techno Press] October 14, 2015
Chile's salmon farmers say production by the end of next year and into 2017 will be reduced in order for operations to remain profitable under lower global market prices and higher production costs.
Industry association SalmonChile says declining wholesale market prices have dipped below production costs for many of the country's producers.
"We're in a really critical situation," said the general manager of the Association of the Chilean Salmon Industry AG (SalmonChile), Felipe Manterola. The executive plotted the time explaining that last year the average price was US$ 2.0 per lb, while this year is about US $1.59 per lb, which "is well below the cost of production."
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